In recent housing news, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving down following weaker than expected economic and housing news.
“Mortgage rates were down this week as real GDP was revised downwards to 2.4 percent growth in the fourth quarter of 2013,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Fixed residential investment negatively contributed to GDP decreasing 8.7 percent in the fourth quarter. The private sector added an estimated 139,000 jobs in February, which was below the market consensus and followed a downward revision of 48,000 jobs in January, according to the ADP Research Institute.”
The 30-year fixed-rate mortgage (FRM) averaged 4.28 percent with an average 0.7 point for the week ending March 6, 2014, down from last week when it averaged 4.37 percent. A year ago at this time, the 30-year FRM averaged 3.52 percent.
Additionally, the 15-year FRM this week averaged 3.32 percent with an average 0.6 point, down from the previous week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 2.76 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03 percent this week with an average 0.4 point, down from the previous week when it averaged 3.05 percent. A year ago, the 5-year ARM averaged 2.63 percent.
Results show that the 1-year Treasury-indexed ARM averaged 2.52 percent this week with an average 0.3 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.63 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.
For more information, visit www.FreddieMac.com.