Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates easing slightly for the third consecutive week to remain at a six-month low.

“Mortgage rates were little changed amid a week of light economic reports,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “These lower than expected rates are welcome news with the spring home-buying season underway and may even provide those who haven’t already refinanced a reason to take another look. Of the few releases, advanced retail sales rose 0.1 percent in April, but below the market forecast consensus of a 0.4 percent increase. Also, the Producer Price Index for final demand rose 0.6 percent in April, which followed a 0.5 percent boost from the prior month.”

The 30-year fixed-rate mortgage (FRM) averaged 4.20 percent with an average 0.6 point for the week ending May 15, 2014, down from the previous week when it averaged 4.21 percent. A year ago at this time, the 30-year FRM averaged 3.51 percent.

Additionally, the 15-year FRM this week averaged 3.29 percent with an average 0.6 point, down from the previous week when it averaged 3.32 percent. A year ago at this time, the 15-year FRM averaged 2.69 percent.

Results show that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.01 percent this week with an average 0.4 point, down from the previous week when it averaged 3.05 percent. A year ago, the 5-year ARM averaged 2.62 percent.

The 1-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.5 point, unchanged from the previous week. At this time last year, the 1-year ARM averaged 2.55 percent.

Freddie Mac also released its U.S. Economic and Housing Market Outlook for May, showing that regular supply and demand forces continue to produce unexpected results as the housing recovery readies to shift into a higher gear during the spring home buying season. The complete May 2014 U.S. Economic and Housing Market Outlook and forecast table are available here.

Source: Freddie Mac