Average Mortgage Rates at Another Low for the Year
by STAFF WRITER Published June 10, 2010 Credit Unions Online
Mortgage rates for the past week, monitored by Freddie Mac’s PMMS, for 30 year fixed-rate mortgage averaged 4.72 percent and 0.7 points for the week ending June 10, 2010. This is a small drop from last week's 4.79 percent and another low for the year. 30 year fixed rate mortgages averaged higher at this time last year at 5.59 percent.
The 15-year fixed-rate mortgage this week averaged 4.17 percent with an average 0.7 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 5.06 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year fixed-rate mortgage in August of 1991 and sets another record low for the fourth straight week.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.92 percent this week, with an average 0.7 point, down from last week when it averaged 3.94 percent. A year ago, the 5-year adjustable-rate mortgage averaged 5.17 percent.
The 1-year Treasury-indexed adjustable-rate mortgage averaged 3.91 percent this week with an average 0.6 point, down from last week when it averaged 3.95 percent. At this time last year, the 1-year adjustable-rate mortgage averaged 5.04 percent. The 1-year adjustable-rate mortgage has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent.
"Following a relatively weak employment report, bond yields fell this week and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain. Interest rates on 30-year fixed mortgage hover near the record low set on December 3, 2009 in our survey; the Primary Mortgage Market Survey began in April 1971. Meanwhile, rates on 15-year fixed mortgages set another record low for the fourth week in a row.
"Overall, the economy does show signs of improvement. The Federal Reserve reported in its June 9th regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most Districts, but remained an issue for banks with large exposure to real estate."