Freddie Mac’s Primary Mortgage Market Survey (PMMS) results have been released and it appears that these stats show average fixed mortgage rates moving slightly lower as markets awaited the Federal Reserve’s monetary policy announcement.
Frank Nothaft is the vice president and chief economist of Freddie Mac and he explained, “Mortgage rates were relatively unchanged this week as market participants awaited the Federal Reserve’s (Fed) monetary policy announcement.”
He goes on to say, “The Fed stated that economic growth has been expanding at a moderate pace and that labor market conditions have shown further improvement, although the unemployment rate remains elevated.” This is something we have stated before in a previous blog, but that financial experts are at the very least, optimistic about the future. Nothaft goes on to say, “It noted inflation has been running below the Fed’s longer-run objective as well. As a result, the Fed will continue its bond-buying program at the current pace and maintain its highly accommodative monetary policy stance.”
Meanwhile, he five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.79 percent with an average 0.5 point, which is the same as last week. However, a year ago, the five-year ARM averaged 2.77 percent. The one-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.4 point, down from last week when it averaged 2.58 percent. At this time last year, the one-year ARM averaged 2.74 percent.
Nothaft reassures us, “The Fed also affirmed that the housing sector has strengthened further.” On example of this is that -family housing permits increased nearly two percentage points in May. Nothaft says that means we’re at, “an annualized pace of 649,000 homes, the most since May 2008. In addition, homebuilder confidence in June rose to its highest reading since March 2006.”
It looks as though things are starting to look up. The more confident people are in the housing market, the more apt they will be to buying that new house and starting that new life by taking that new job. It’s time we all get our feet back on the ground.