Friday, April 6, 2012

Freddie Mac Reports 30-Year Still Below 4%; Little Change Overall

The 30-year fixed-rate mortgage is still below 4 percent and showed very little movement since last week, according to Freddie Mac’s Primary Mortgage Market Survey.

The 30-year fixed-rate mortgage averaged 3.98 percent (0.7 point) for the week ending April 5, 2012, down slightly when it averaged 3.99 percent last week. A decrease compared to last year, the 30-year rate averaged 4.87 percent.

The 15-year fixed-rate dropped to 3.21 percent (0.7 point), down from last week when it averaged 3.23 percent. A year ago at this time, it averaged 4.10 percent.

The 5-year ARM was also down, averaging 2.86 percent (0.8 point) compared to 2.90 percent last week. A year ago, the 5-year ARM was 3.72 percent.

The 1-year ARM was left unchanged from last week, averaging 2.78 percent (0.6 point). The 1-year ARM stood at 3.22 percent at this time last year.

“The final estimate of 2011 fourth quarter growth remained unchanged at 3 percent, representing the strongest pace since the second quarter of 2010,” said Frank Nothaft, VP and chief economist of Freddie Mac. “The March 13th policy committee minutes from the Federal Reserve noted that the housing market remained depressed and supported the continuation of the maturity extension program through June 2012, but did not announce any new stimulus action beyond that date.”

Bankrate also reported little movement this week in its weekly mortgage survey, which pulls data provided by the top 10 banks and and thrifts in the top 10 markets.

The 30-year fixed-mortgage rate actually ticked higher at 4.25 percent, up from last week’s average of 4.23 percent.

The 15-year fixed-rate mortgage averaged 3.42 percent, down from 3.44 percent last week.

The 5-year ARM averaged 3.15 percent, up slightly from last week’s average of 3.14 percent.

Looking ahead, Bankrate stated, “it will take either faster job growth indicative of further strengthening in the economy, or a disappointment in corporate earnings and consumer spending that renews worries about the economy, to drive rates decidedly in one direction or another.”

Source Esther Cho

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