Mortgage Interest Rates Climb Up After QE2

July 8, 2011 (Shirley Allen)

Both long and short-term mortgage rates increased last week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) as Treasury yields ended the week higher following the end of the Federal Reserve’s monetary easing policies.

Fixed Rate Mortgages (FRM):

Thirty year and the 15 year FRMs increased from the previous week with the 30 year FRM averaging 4.60 percent with an average of 0.7 points, up from 4.51 percent reported the previous week. The 30 year FRM averaged 4.58 percent a year earlier.

The 15 year FRM increased to 3.75 percent this week with an average 0.7 points, from 3.69 percent reported the previous week, and down from 4.07 percent a year ago.

Adjustable Rate Mortgages (ARM):

ARM interest rates also increased in the last week as the 5-year Treasury-indexed hybrid ARM averaged 3.30 percent, with an average of 0.6 points, which is up from 3.22 percent the previous week. The 5 year ARM averaged 3.75 percent a year earlier.

The 1-year Treasury-indexed ARM averaged 3.01 percent this week with an average of 0.6 points, up from 2.97 percent the previous week. A year ago, the 1 year ARM averaged 3.75 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards. For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6 percent. With today’s rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.60 4.62 4.62 4.64 4.65 4.53
Fees & Points 0.7 0.7 0.9 0.6 0.6 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.75 3.76 3.76 3.77 3.81 3.69
Fees & Points 0.7 0.6 0.8 0.5 0.6 0.7

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.30 3.41 3.19 3.42 3.33 3.16
Fees & Points 0.6 0.6 0.8 0.4 0.6 0.6
Margin 2.74 2.75 2.75 2.72 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.01 3.26 2.83 3.18 2.94 2.78
Fees & Points 0.6 0.6 0.5 0.4 0.8 0.5
Margin 2.76 2.80 2.75 2.73 2.77 2.75

The National Mortgage Rate Snapshot One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.57   4.07   3.75   3.75   4.51   3.69   3.22   2.97  
Fees & Points 0.7   0.7   0.7   0.7   0.7   0.7   0.6   0.6  
Margin N/A N/A 2.74   2.77   N/A N/A 2.74   2.76  

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac