Mortgage Rates Follow Bond Yields Higher for the Week

MCLEAN, Va., Aug. 25, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving higher from the previous week's record lows as Treasury bond yields moved higher and other housing data showed improvement. However, the 5-year ARM did decline to 3.07 percent thereby setting a new all-time record low.

News Facts

·         30-year fixed-rate mortgage (FRM) averaged 4.22 percent with an average 0.7 point for the week ending August 25, 2011, up from last week when it averaged 4.15 percent. Last year at this time, the 30-year FRM averaged 4.36 percent. 

·         15-year FRM this week averaged 3.44 percent with an average 0.6 point, up from last week when it averaged 3.36 percent. A year ago at this time, the 15-year FRM averaged 3.86 percent. 

·         5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.07 percent this week, with an average 0.5 point, down from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 3.56 percent.

·         1-year Treasury-indexed ARM averaged 2.93 percent this week with an average 0.5 point, up from last week when it averaged 2.86 percent. At this time last year, the 1-year ARM averaged 3.52 percent.  

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 for Regional and National Mortgage Rate Details and Definitions.

Quotes

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

"Fixed mortgage rates followed Treasury bond yields higher this week while data reports suggest an improvement in the housing market. The Federal Housing Finance Agency national House Price Index rose for the third straight month in June bolstered by a 3.3 percent gain in the East North Central Census Division. In addition, the Mortgage Bankers Association reported that the serious delinquency rate (90 days or more plus foreclosures) on mortgages outstanding fell for the sixth consecutive quarter at the end of June to 7.85 percent."

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @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