Mortgage Rates Mixed as 30-Year Fixed Continues to Hold Steady
|June 30, 2011|
Fixed mortgage rates held steady amid mixed economic reports and some signs of improvement in the housing market.
According to the latest Freddie Mac Primary Mortgage Market Survey, The 30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.7 point for the week ending June 30, 2011, up from last week when it averaged 4.50 percent. Last year at this time, the 30-year FRM averaged 4.58 percent.
The 15-year FRM this week averaged 3.69 percent with an average 0.7 point, the same from last week when it averaged 3.69 percent. A year ago at this time, the 15-year FRM averaged 4.04 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.22 percent this week, with an average 0.6 point, down from last week when it averaged 3.25 percent. A year ago, the 5-year ARM averaged 3.79 percent.
The 1-year Treasury-indexed ARM averaged 2.97 percent this week with an average 0.6 point, down from last week when it averaged 2.99 percent. At this time last year, the 1-year ARM averaged 3.80 percent.
Meanwhile, the 5-year adjustable-rate mortgage hit a new record low at 3.22 percent, dropping below the previous record of 3.25 percent set in November 2010.
"Interest rates on 30-year fixed mortgages hovered around 4.5 percent for the fourth consecutive week following mixed reports on the strength of the economy,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “First quarter economic growth was revised up in the final estimate, but growth in consumer spending stagnated in May while April's figure was revised downward; consumer expenditures account for roughly two-thirds of the nation's gross domestic product.
"Meanwhile, there were some signs of improvement in the housing market. In April, the S&P/Case-Shiller 20-city composite home price index rose 0.7 percent, representing the first monthly increase since July 2010. However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period. Pending existing home sales rebounded in May, exhibiting the largest monthly increase since November 2010."