Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing an investor flight to safety for U.S. Treasuries is pushing average fixed mortgage rates lower and helping to keep buyer activity strong toward the close of the spring homebuying season.
“Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China,” says Sean Becketti, chief economist, Freddie Mac. ”Mortgage rates fell as well, although not by as much as government bond yields. The rate on 30-year fixed-rate mortgages fell 4 basis points to 4.04 percent.
“Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases. In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously — monitoring events both overseas and in the U.S. to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”
The 30-year fixed-rate mortgage (FRM) averaged 4.04 percent with an average 0.6 point for the week ending July 9, 2015, down from the last week when it averaged 4.08 percent. A year ago at this time, the 30-year FRM averaged 4.15 percent.
Additionally, they 15-year FRM averaged 3.20 percent with an average 0.5 point, down from the week prior when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent with an average 0.4 point, down from the week earlier when it averaged 2.99 percent. A year ago, the 5-year ARM averaged 2.99 percent.
Results show that the 1-year Treasury-indexed ARM averaged 2.50 percent with an average 0.3 point, down from the last week when it averaged 2.52 percent. At this time last year, the 1-year ARM averaged 2.40 percent.
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