Weekly Report Notes Modest Rate Changes

Mortgage interest rates changed very little during the week ended May 14 according to data released Thursday morning by Freddie Mac.

Results of the corporations weekly Primary Mortgage Market Survey placed the average interest rate of the conventional 30-year fixed-rate mortgage (FRM) at 4.86 Percent with an average 0.6 point.  Last week the average was 4.84 percent with 0.7 point.

The 15-year FRM increased one basis point to 4.52 percent.  Fees and points were down to 0.6 point from 0.7 point.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) dropped to an average of 4.82 percent from 4.90 percent a week earlier.  Fees and points remained at 0.6 point.

One-year Treasury-indexed ARMs were also lower this week, with an average of 4.71 percent compared to 4.78 percent during the week ended May 7.  Fees and points were unchanged at 0.6 point.

Frank Nothaft, Freddie Mac vice president and chief economists stated, "Interest rates for fixed-rate mortgages were little changed this week following the release of April's employment figures.  The economy lost 539,000 jobs, less than the monthly job loss of the past five months, and the unemployment rate rose to 8.9 percent.  ARM rates, however, fell slightly over the period.

"Relatively low house prices and interest rates are clearly helping first-time homebuyers.  Housing affordability for the median first-time buyer reached an all-time record high in the first quarter since the NAR index began in 1981.  Consequently, first-time homebuyers accounted for half of existing home sales in the first three months of this year, the NAR reported."

Earlier in the week Fannie Mae reported its posted weekly yields for the period ended May 8.

The conventional 30-year FRM averaged 4.57 percent compared to 4.49 percent one week earlier.  The 15-year FRM increased from 4.10 percent to 4.15 percent while the government guaranteed 30-year FHA and VA mortgages carried an average rate of 5.88 percent compared to 5.74 percent a week earlier.

Fannie Mae's yield for the one-year adjustable was reported at 3.37 percent.  The previous week the average was 3.32 percent.

Fannie Mae's figures are reported net of servicing fees.