Average rate on 30-year fixed-rate US mortgage rose to 3.51% in week ended May 16 from 3.42% in previous week: Freddie Mac

Allison Oesterle

MCLEAN, Virginia , May 16, 2013 (press release) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed-rate mortgages following U.S. Treasury bond yields higher this week on signs of stronger consumer spending.

Mortgage Rates Move Higher for Second Consecutive Week

News Facts

30-year fixed-rate mortgage (FRM) averaged 3.51 percent with an average 0.7 point for the week ending May 16, 2013, up from last week when it averaged 3.42 percent. Last year at this time, the 30-year FRM averaged 3.79 percent.
15-year FRM this week averaged 2.69 percent with an average 0.7 point, up from last week when it averaged 2.61 percent. A year ago at this time, the 15-year FRM averaged 3.04 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.62 percent this week with an average 0.5 point, up from last week when it averaged 2.58 percent. A year ago, the 5-year ARM averaged 2.83 percent.
1-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, up from last week when it averaged 2.53 percent. At this time last year, the 1-year ARM averaged 2.78 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 links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Mortgage rates followed U.S. Treasury bond yields higher this week on signs of stronger consumer spending. Advanced retail sales rose 0.1 percent in April, above the market forecast consensus of a 0.3 percent decline. Excluding such items as automobiles and gasoline, sales were up 0.5 percent for the second time in three months.
"Households are also shoring up their balance sheets. Total household debt fell by about $110 billion in the first quarter. In addition, approximately 3.0 million homeowners were seriously delinquent (90 days or more delinquent or in foreclosure) on their first mortgages, down from a peak of about 5.1 million in the fourth quarter of 2009."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. For more information please visit www.FreddieMac.com and Twitter: @FreddieMac.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.

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