Mortgage Rates Calm, Near Record Lows

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates showed little change and remained near their record lows helping to keep homebuyer affordability high and attractive to those looking to refinance.

30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending December 6, 2012, up from last week when it averaged 3.32 percent. Last year at this time, the 30-year FRM averaged 3.99 percent.

15-year FRM this week averaged 2.67 percent with an average 0.6 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent this week with an average 0.6 point, down from last week when it averaged 2.72 percent. A year ago, the 5-year ARM averaged 2.93 percent.

1-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, down from last week when it averaged 2.56. At this time last year, the 1-year ARM averaged 2.80 percent. According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation. Third quarter real GDP growth was revised from an initial report of 2.0 percent to 2.7 percent, nearly matching the market consensus forecast. Meanwhile, the 12-month growth rate of the core price index of consumer expenditures remained at 1.7 percent in October which is on the low end of the Federal Reserve's projection range for this year." "The housing market is aiding in this recovery. For instance, fixed residential investment added positive growth over the past six consecutive quarters and in the third quarter alone contributed 0.3 percentage points to real GDP growth. In addition, residential construction spending was up 3 percent between September and October. And, pending home sales saw a 5.2 percent increase in October to its highest reading since March 2007."

December 7, 2012, Published by Realty Times

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