Fixed mortgage rates remained steady, aiding homebuyer affordability amid a tight supply of for-sale homes in many markets, according to the recently released Freddie Mac Primary Mortgage Market Survey® (PMMS®).
Survey results show the 30-year fixed-rate mortgage (FRM) averaged 3.62 percent with an average 0.6 point for the week, down slightly from last week when it averaged 3.65 percent. A year ago at this time, the 30-year FRM averaged 3.80 percent.
The 15-year FRM this week averaged 2.93 percent with an average 0.5 point, down from last week when it averaged 2.95 percent. A year ago at this time, the 15-year FRM averaged 3.07 percent.
Experts are forecasting more volatility in the coming week’s market as bond markets were under pressure on Thursday prior to the holiday weekend.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.79 percent this week with an average 0.5 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 2.99 percent.
“Yields on the 10-year Treasury continued their downward trend this week after a small rally the previous two weeks,” says Sean Becketti, chief economist, Freddie Mac. “The 30-year mortgage responded, falling 3 basis points to 3.62 percent. Since the beginning of 2016, 30-year rates have fallen almost 40 basis points helping housing markets sustain their momentum into this year. Earlier this week, the National Association of Realtors announced existing home-sales were up 4 percent month-over-month and up 11 percent from last year.”
For more information, visit www.freddiemac.com.
Reprinted with permission from RISMedia. ©2016. All rights reserved.
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