Thirty Year Fixed Rate Mortgage Declines to 4.63 Percent

May 12, 2011 (Shirley Allen)

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates declining for the fourth consecutive week. Mortgage rates for the 30-year fixed-rate averaged 4.63 percent, and the 15-year fixed averaged 3.82 percent, their lowest levels yet in 2011.

  • 30-year fixed-rate mortgage (FRM) averaged 4.63 percent with an average 0.7 point for the week ending May 12, 2011, down from last week when it averaged 4.71 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.  
  • 15-year FRM this week averaged 3.82 percent with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago at this time, the 15-year FRM averaged 4.30 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, down from last week when it averaged 3.47 percent. A year ago, the 5-year ARM averaged 3.95 percent.
  • 1-year Treasury-indexed ARM averaged 3.11 percent this week with an average 0.5 point, down from last week when it averaged 3.14 percent. At this time last year, the 1-year ARM averaged 4.02 percent.  

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates continued to decline this week following a mixed employment report. The economy added a healthy number of 244,000 workers in April, the most in 11 months, and the figures for March and February were revised up by 56,000 more jobs. However, the unemployment rate rose to 9.0 percent from 8.8 percent in March and was the highest reading since January. In addition, wages grew by only 0.1 percent, which was below the market consensus forecast.

And

“Distressed homes are suppressing house prices in many local areas. The National Association of Realtors® reported these homes sold at a 20 percent discount in the first quarter of this year and accounted for 39 percent of all existing home sales, up from 36 percent in the first quarter of 2010. As a result, only 22 percent of metropolitan areas exhibited higher median sales prices from a year ago, compared to 51 percent in the fourth quarter of 2010.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.63 4.63 4.65 4.67 4.70 4.56
Fees & Points 0.7 0.6 0.9 0.6 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.82 3.83 3.83 3.83 3.90 3.76
Fees & Points 0.7 0.6 0.8 0.5 0.7 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.41 3.63 3.36 3.38 3.50 3.21
Fees & Points 0.6 0.5 0.7 0.4 0.5 0.7
Margin 2.74 2.74 2.75 2.72 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.11 3.24 2.89 3.52 3.04 2.88
Fees & Points 0.5 0.6 0.5 0.3 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 4.93   4.30   3.95   4.02   4.71   3.89   3.47   3.14  
Fees & Points 0.7   0.6   0.6   0.6   0.7   0.7   0.6   0.5  
Margin N/A N/A 2.74   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

Source:
Freddie Mac