Digital News Report – Today, Freddie Mac (OTC: FMCC) weekly Primary Mortgage Market Survey® (PMMS®) was released and the home loan interest rates were even lower than the previous week’s data. The 30-year fixed rate mortgage averaged 4.49 percent and the 15-year fixed home loan rate averaged 3.68 percent for the week ending on June 9, 2011. This is the lowest average that the survey seen since November 2010.
The drop of 0.7 points from the previous week was noticed by the Freddie Mac survey. The week prior had the 30-year fixed rate mortgage with an average of 4.55 percent and the new lower average was 4.49 percent. The same time one year ago the 30 year fixed rate loan was averaging 4.72 percent.
The 15-year fixed rate mortgage was averaging 3.68 percent for the week ending on June 9. This also was a 0.7 point decline from the previous week’s data of 3.74 percent. The survey data showed that the 15-year fixed rate mortgages one year at the same time was averaging 4.17 percent.
Adjustable rate mortgages were also less this week. The survey reported that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.28 percent. This was 0.5 points reduced from last week’s data of 3.41 percent average. The same time one year prior, the 5-year adjustable rate mortgage was averaging 3.92 percent. The 1-year adjustable rate mortgage was averaging 2.95 percent this week, which was also 0.5 percent less than the previous data of 3.13 percent. One year prior at the same time, the 1-year adjustable rate mortgage was averaging 3.91 percent.
The Obama Administration Housing Scorecard for May 2011 showed that the housing prices are still struggling to recover. The report said that the housing market continue to be fragile. The projected housing price futures from January 2009 showed much lower home values than current data. New home sales are still suffering since the housing market collapsed, but there have been improvements for existing home sales. The housing affordability index has improved dramatically because of the low housing prices combined with the low mortgage interest rates.
By: Victoria Brown