Mortgage Rates Down Again as GDP is Revised Lower

McLean, VA – Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), with the 30-year and 15-year fixed-rate mortgages reaching record lows for this survey. (The 30-year fixed-rate survey began in 1971, and the 15-year began in 1991.) The 5-year adjustable rate mortgage also reached its lowest level since Freddie Mac began tracking it in 2005.

30-year fixed-rate mortgage (FRM) averaged 4.49 percent with an average 0.7 point for the week ending August 5, 2010, down from last week when it averaged 4.54 percent. Last year at this time, the 30-year FRM averaged 5.22 percent.

15-year FRM this week averaged a record low of 3.95 percent with an average 0.6 point, down from last week when it averaged 4.00 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.63 percent this week, with an average 0.6 point, down from last week when it averaged 3.76 percent. A year ago, the 5-year ARM averaged 4.73 percent.

1-year Treasury-indexed ARM averaged 3.55 percent this week with an average 0.7 point, down from last week when it averaged 3.64 percent. At this time last year, the 1-year ARM averaged 4.78 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, said, "And yet again, interest rates for fixed-rate mortgages and now the hybrid 5-year ARM fell to all-time record lows this week following the second quarter GDP release. Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease.

"More recently, housing investment picked up in the second quarter of this year as the homebuyer tax credit spurred new and existing sales and low mortgage rates encouraged remodeling. Fixed residential investment added 0.6 percentage points to second quarter real GDP growth following two quarters of decline." 


August 6, 2010 , Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com