Mortgage Interest Rates Drop for the First Time in Four Weeks

April 21, 2011 (Shirley Allen)
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Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates across the board dropping for the first time after four consecutive weeks of increases, but notes that the housing market continues to struggle despite historically low interest rates.

  • 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 21, 2011, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.  
  • 15-year FRM this week averaged 4.02 percent with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.61 percent this week, with an average 0.6 point, down from last week when it averaged 3.78 percent. A year ago, the 5-year ARM averaged 4.03 percent.
  • 1-year Treasury-indexed ARM averaged 3.16 percent this week with an average 0.6 point, down from last week when it averaged 3.25 percent. At this time last year, the 1-year ARM averaged 4.22 percent.  

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Low inflation is keeping mortgage rates at bay. The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards.”

And…

“The housing market continues to struggle. Although housing starts and existing home sales in March were stronger than the market consensus, they were still at low levels. Moreover, homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.80 4.85 4.79 4.81 4.85 4.73
Fees & Points 0.7 0.7 0.8 0.6 0.6 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.02 4.05 4.01 4.02 4.10 3.95
Fees & Points 0.7 0.7 0.8 0.5 0.6 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.61 3.80 3.49 3.64 3.57 3.50
Fees & Points 0.6 0.6 0.7 0.3 0.6 0.9
Margin 2.74 2.76 2.75 2.72 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.16 3.25 2.97 3.61 3.13 2.93
Fees & Points 0.6 0.6 0.7 0.3 0.9 0.6
Margin 2.76 2.80 2.75 2.72 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 5.07   4.39   4.03   4.22   4.91   4.13   3.78   3.25  
Fees & Points 0.7   0.6   0.6   0.5   0.6   0.7   0.6   0.6  
Margin N/A N/A 2.75   2.75   N/A N/A 2.74   2.76  

 
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates

Sources:
Freddie Mac
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