Mortgage Interest Rates Hold Steady on Mixed Economic News

October 20, 2011 (Shirley Allen)

A mixed bag of economic news kept average mortgage rates virtually unchanged from the previous week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).

Fixed Rate Mortgages (FRM):

FRM interest rates remained virtually unchanged from last week with the 30 year FRM averaging 4.11 percent with an average of 0.8 points, down from last week’s average of 4.12 percent. The 30 year FRM averaged 4.21 percent a year earlier.

The 15 year FRM averaged 3.38 percent this week with an average 0.8 points, up from 3.37 percent reported the previous week, and down from 3.64 percent a year ago.

Adjustable Rate Mortgages (ARM):

ARM interest rates were mixed again this week with the 5-year Treasury-indexed hybrid ARM averaging 3.01 percent, down from 3.06 percent last week, with an average of 0.6 points. The 5 year ARM averaged 3.45 percent a year earlier.

The 1-year Treasury-indexed ARM decreased this week, averaging 2.94 percent with an average of 0.6 points, up from 2.90 percent the previous week. A year ago, the 1 year ARM averaged 3.30 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates remained relatively unchanged this week amid mixed economic data reports. Retail sales were up 1.1 percent in September, almost four times the pace set in August, but consumer sentiment was down in October, according to the Thomson Reuters/University of Michigan index. Finally, in its October 9th regional economic review, the Federal Reserve reported that overall economic activity continued to expand in September, but contacts noted weaker or less certain outlooks for business conditions.”

“The home construction industry had some good news for a change. The National Association of Home Builders/Wells Fargo Housing Market Index jumped four points in October, the largest one-month gain since April 2010. Housing starts sprang up 15 percent in September, largely driven by a spike in multifamily starts to a level last seen in 2008. Building permits on 5-or-more unit buildings fell by 13 percent, however, suggesting that the multifamily building pickup may be temporary,” he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.11 4.10 4.17 4.12 4.13 4.06
Fees & Points 0.8 0.8 0.8 0.7 0.8 0.9

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.38 3.38 3.40 3.38 3.42 3.35
Fees & Points 0.8 0.7 0.8 0.6 0.8 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.01 3.08 2.97 3.13 2.96 2.90
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.7
Margin 2.74 2.75 2.75 2.73 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.94 3.00 2.84 3.50 2.71 2.70
Fees & Points 0.6 0.8 0.6 0.4 0.6 0.5
Margin 2.76 2.79 2.75 2.74 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 4.21   3.64   3.45   3.30   4.12   3.37   3.06   2.90  
Fees & Points 0.8   0.7   0.6   0.7   0.8   0.8   0.6   0.6  
Margin N/A N/A 2.76   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