News Release Issued: November 3, 2011 10:00 AM EDT
MCLEAN, Va., Nov. 3, 2011 /PRNewswire/ --Â Freddie MacÂ (OTC: FMCC) today released the results of itsÂ Primary Mortgage Market SurveyÂ®Â (PMMSÂ®), showing average mortgage rates declining sharply as investors rushed to U.S. Treasury bonds amid concerns over the European debt market. The 30-year fixed at 4.00 percent marks the second lowest reading since it hit a record 3.94 percent in the October 6, 2011 PMMS, the lowest in history.
- 30-year fixed-rate mortgageÂ (FRM) averaged 4.00 percent with an average 0.7 point for the week ending November 3, 2011, down from last week when it averaged 4.10 percent. Last year at this time, the 30-year FRM averaged 4.24 percent. Â
- 15-year FRMÂ this week averaged 3.31 percent with an average 0.7 point, down from last week when it averaged 3.38 percent.Â A year ago at this time, the 15-year FRM averaged 3.63 percent. Â
- 1-year Treasury-indexed ARMÂ averaged 2.88 percent this week with an average 0.6 point, down from last week when it averaged 2.90 percent. At this time last year, the 1-year ARM averaged 3.26 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.
- "Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates. Meanwhile, on the home front, the U.S. economy continued its gradual recovery. The Bureau of Economic Analysis reported theÂ economy grewÂ 2.5 percent in the third quarter, the strongest pace in a year, led by a surge in consumer expenditures. In addition,Â consumer spending roseÂ 0.6 percent in September, nearly threefold that of August. Finally,Â consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose for the second month in a row in October to its highest reading since July." Â
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