30-Year Fixed-Rate Mortgage Averages 3.66 Percent

June 21, 2012

Average mortgage rates eased amid worsening economic indicators, according to the latest Freddie Mac Primary Mortgage Market Survey, as both the 30-year fixed and the 5-year ARM registered new average record lows.

The 30-year fixed-rate mortgage (FRM) averaged 3.66 percent with an average 0.7 point for the week ending June 21, down from last week when it averaged 3.71 percent. Last year at this time, the 30-year FRM averaged 4.50 percent.

Meanwhile, the 15-year FRM this week averaged 2.95 percent with an average 0.6 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.69 percent.

"Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory,” said Frank Nothaft, vice president and chief economist for Freddie Mac.

He said industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast. In addition, consumer sentiment fell in June to its lowest level this year, according to the University of Michigan survey. In its June 20, monetary policy announcement, the Federal Reserve also noted growth in employment has slowed in recent months and household spending appears to be rising at a somewhat slower pace.

"However, there were also some positive indicators on the housing market,” Nothaft added. “Construction on one-family homes rose for the third consecutive month in May to an annualized pace of 516,000. Furthermore, homebuilder confidence rose in June to its highest reading in over five years."

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.77 percent this week, with an average 0.6 point, down from last week when it averaged 2.80. A year ago, the 5-year ARM averaged 3.25 percent.

The 1-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.5 point, down from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 2.99 percent.


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