Mortgage Rates Continue To Fall

June 24, 2012

percent sign with a down arrowMany people around the Chicagoland area thought they had seen mortgage rates fall to their lowest a week ago. Now comes news that mortgage rates dropped even further.

Freddie Mac’s Primary Mortgage Market Survey (PMMS), released last Thursday, shows the current mortgage rates as of the week ending June 21:

  • 30-year fixed rate mortgage now stands at 3.66 percent, down from last week’s average of 3.71 percent.
  • 15-year fixed rate mortgage is currently 2.95 percent, down from last week’s 2.98 percent average.
  • 5-year Treasury-Indexed adjustable-rate mortgage is at 2.77 percent this week, down from 2.80 percent from the prior week.
  • 1-Year Treasury-Indexed adjustable-rate mortgage averaged 2.47 percent this week, down from the 2.78 percent average of last week.

“Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory. Industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “In addition, consumer sentiment fell in June to its lowest level this year, according to the University of Michigan survey. In its June 20 monetary policy announcement, the Federal Reserve also noted growth in employment has slowed in recent months and household spending appears to be rising at a somewhat slower pace.”

For every bit of good news emerging out of a housing market desperately trying to regain its footing, there always seems to be that left hook of bad news spoiling the party.

However, there is a silver lining according to Nothaft.

“There were also some positive indicators on the housing market. Construction on one-family homes rose for the third consecutive month in May to an annualized pace of 516,000. Furthermore, homebuilder confidence rose in June to its highest reading in over five years.”

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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