FREDDIE MAC: Mortgage Rates Lower for the Fifth Straight Week

FREDDIE MAC: Mortgage Rates Lower for the Fifth Straight Week

Freddie Mac (OTCQB: FMCC) on Thursday, May 29, 2014 released the results of its Primary Mortgage Market Survey® (PMMS), showing average fixed mortgage rates falling for the fifth consecutive week and hitting new 2014 lows. The average for the 30-year fixed-rate mortgage is at its lowest point since the week of October 31, 2013.

"Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3 percent but not as much as expected," said Frank Nothaft, Freddie Mac's vice president and chief economist. "However, new home sales [PDF] rose 6.4 percent in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months."

"Also, as the spring home buying season continues, we see stronger consumer confidence as house prices remain on the rise," he noted. "The Conference Board reported that confidence among consumers rose in May after dipping in April. Meanwhile, the S&P/Case-Shiller® 20-city composite index [PDF] rose 0.9 percent in March, above the consensus forecast."

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.12 percent with an average 0.6 point for the week ending May 29, 2014, down from last week when it averaged 4.14 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent. 
  • 15-year FRM this week averaged 3.21 percent with an average 0.5 point, down from last week when it averaged 3.25 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.3 point, unchanged from last week. A year ago, the 5-year ARM averaged 2.66 percent.
  • 1-year Treasury-indexed ARM averaged 2.41 percent this week with an average 0.4 point, down from last week when it averaged 2.43 percent. At this time last year, the 1-year ARM averaged 2.54 percent. 

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

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