McLean, VA – Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.
30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.
15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.
1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, "In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week."
"Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."