Mortgages are performing steadily with only slight increases in some loan programs. This is the gist of the Primary Mortgage Market Survey (PMMS) conducted by Freddie Mac for the week ending March 10, 2011. It is important to note that the fixed-rate mortgages are still below the 5.0 percent mark.
According to the report, the 30-year fixed mortgage rates averaged 4.88 percent this week, which is just 0.01 percent more than what they were during the last week. There is no change in the rate of 15-year FRM, and it is still at 4.15 percent. Talking about the adjustable rate mortgages, there are mixed results for 5-year Treasury-indexed hybrid ARM and 1-year Treasury-indexed ARM.
The 5-year adjustable rate mortgages were up by just 0.01 percent when it averaged 3.73 this week. Last week, it was at 3.72 percent. The 1-year ARM, on the other hand, slipped by 0.02 percent this week. It averaged 3.21 percent this week against 3.23 percent of the last week.
Factors like increasing employment opportunities and improving housing affordability index are making mortgage rates to hold steady and remain within the 5 percent mark. According to a NAR report, the affordability index has risen to an unprecedented level, which is an encouragement to the people who want to buy homes. Consequently, the mortgage applications rose almost 16 percent over the week, which is an indication for the improving home purchase market.