Mortgage Rates Fall Continue to Fall
Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey® (PMMS®) in which mortgage rates for the 30-year fixed-rate mortgage (FRM) averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when rates for the home loan program averaged 5.42 percent. Last year at this time, the 30-year FRM mortgage rate averaged 6.35 percent.
Mortgage rates for the 15-year FRM this week averaged 4.77 percent with an average 0.7 point, down from last week when rates for the home loan program averaged 4.87 percent. A year ago at this time, the 15-year FRM mortgage rate averaged 5.92 percent.
Mortgage rates for Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.88 percent this week, with an average 0.7 point, down from last week when rates for the home loan program averaged 4.99 percent. A year ago, the 5-year ARM mortgage rate averaged 5.78 percent.
Mortgage rates for One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.6 point, up slightly from last week when rates for the home loan program averaged 4.93 percent. At this time last year, the 1-year ARM mortgage rate averaged 5.17 percent.
"Lower mortgage rates are helping to support the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "The 30-year fixed-rate mortgage rate peaked this year over the week of June 11 and are now around a quarter-of-a-percentage point lower this week. This has led to a 7.2 percent increase in conventional mortgage applications for home purchases by the last full week of June, according to the Mortgage Bankers Association."
