The average rate for a 30-year fixed-rate mortgage during the week ending May 5 matched its low for the year in Freddie Mac’s closely watched survey as the 15-year rate dropped to a new low for 2011.
Freddie Mac chief economist Frank Nothaft attributed the moves to weaker economic data reports that put downward pressure on Treasury bond yields and rates.
David Fournier, chief executive officer of the company that owns the automated Mortgage Market Guide to rates, told this publication at the Mortgage Bankers Association’s secondary market conference that reports of terrorist Osama Bin Laden’s death early in the week likely contributed to downward pressure on rates and yields as well.
As of the morning of May 5, the average weekly 30-year FRM survey rate had slid to 4.71% with an average 0.7 of a point from 4.78% the week previous and the benchmark 10-year Treasury yield that had been above 3.3% last Friday was just below 3.2%.
The average 15-year FRM rate was 3.89% with an average of 0.7 of a point, down from 3.97% the previous week.
A year ago the average 15-year rate was 4.36% and the average 30-year rate was 5%.
Shorter-term mortgage rates also dropped during the week ending May 5 in Freddie’s survey, although the decline in the one-year adjustable–rate mortgage was minimal.
The average five-year hybrid Treasury ARM rate was 3.47% with an average 0.6 of a point, down from 3.51%; and the average one-year Treasury ARM rate in the most recent week was 3.14% with an average 0.5 of a point, down from 3.15% the previous week.
A year ago the average one-year Treasury ARM rate was 4.07% and the average five-year Treasury hybrid rate was 3.97%.
