The FINANCIAL -- Freddie Mac on June 9 released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates following 10-year Treasury yields lower after the May employment report came in well below expectations.
30-year fixed-rate mortgage (FRM) averaged 3.60 percent with an average 0.5 point for the week ending June 9, 2016, down from last week when it averaged 3.66 percent. A year ago at this time, the 30-year FRM averaged 4.04 percent.
15-year FRM this week averaged 2.87 percent with an average 0.5 point, down from last week when it averaged 2.92 percent. A year ago at this time, the 15-year FRM averaged 3.25 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.01 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 link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Attributed to Sean Becketti, chief economist, Freddie Mac.
"Growing optimism about the state of the economy was quickly erased with May's employment report. The disappointing release caused an immediate flight to quality resulting in the 10-year Treasury yield dropping 10 basis points on Friday. The 30-year fixed-rate mortgage responded by falling 6 basis points to 3.60 percent. This week marks the 10th consecutive week the 30-year rate has averaged under 3.7 percent, allowing an extended window for homebuyers to take advantage of these historically-low borrowing costs."