FreddieMac.com

Second Consecutive Week Of Record-Low Fixed Mortgage Rates

MCLEAN, Va., May 10, 2012 -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates hitting new all-time record lows for the second consecutive week as they followed bond yields lower. The 30-year fixed-rate mortgage has averaged below 4 percent all but one week since December 8, 2011, helping to keep homebuyer affordability high.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.83 percent with an average 0.7 point for the week ending May 10, 2012, down from last week when it averaged 3.84 percent. Last year at this time, the 30-year FRM averaged 4.63 percent.  
  • 15-year FRM this week averaged 3.05 percent with an average 0.7 point, down from last week when it averaged 3.07 percent.A year ago at this time, the 15-year FRM averaged 3.82 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.5 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.41 percent.
  • 1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.5 point, up from last week when it averaged 2.70 percent. At this time last year, the 1-year ARM averaged 3.11 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 Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • "Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week. The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs."

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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. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

For further information: Chad Wandler, +1-703-903-2446, Chad_Wandler@FreddieMac.com

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