Long-Term Mortgage Rates Dip to 4.8% in U.S.

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Based on Freddie Mac's (OTC:FMCC) latest Primary Mortgage Market Survey (PMMS), U.S. mortgage rates dropping after four consecutive weeks of inching higher.

30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 21, 2011, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.

Freddie Mac's chief economist Frank Nothaft said, "Low inflation is keeping mortgage rates at bay. The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards."

30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 21, 2011, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.

The 15-year FRM this week averaged 4.02 percent with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.61 percent this week, with an average 0.6 point, down from last week when it averaged 3.78 percent. A year ago, the 5-year ARM averaged 4.03 percent.

The 1-year Treasury-indexed ARM averaged 3.16 percent this week with an average 0.6 point, down from last week when it averaged 3.25 percent. At this time last year, the 1-year ARM averaged 4.22 percent. 

Nothaft further commented, "The housing market continues to struggle. Although housing starts and existing home sales in March were stronger than the market consensus, they were still at low levels. Moreover, homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index."

 

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