News Release Issued: August 11, 2011 10:00 AM EDT
MCLEAN, Va., Aug. 11, 2011 /PRNewswire/ --Â Freddie MacÂ (OTC: FMCC) today released the results of itsÂ Primary Mortgage Market SurveyÂ®Â (PMMSÂ®), showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging new all-time record lows this week.
- 30-year fixed-rate mortgageÂ (FRM) averaged 4.32 percent with an average 0.7 point for the week ending August 11, 2011, downÂ from last week when it averaged 4.39 percent. Last year at this time, the 30-year FRM averaged 4.44 percent. Â
- 15-year FRMÂ this week averaged 3.50 percent with an average 0.7 point, down from last week when it also averaged 3.54 percent.Â A year ago at this time, the 15-year FRM averaged 3.92 percent. Â
- 1-year Treasury-indexed ARMÂ averaged 2.89 percent this week with an average 0.5 point, down from last week when it averaged 3.02 percent. At this time last year, the 1-year ARM averaged 3.53 percent. Â
Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links forÂ Regional and National Mortgage Rate DetailsÂ andÂ Definitions.
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.
- "Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower. Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted thatÂ economic growthÂ so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week.
- "Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market. The National Association of RealtorsÂ® reported that itsaffordability indexÂ over the past three quarters has indicated the highest affordability since the inception of the index in 1970."
Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter:Â @FreddieMac
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
SOURCE Freddie Mac