Now that the oppressive winter has died down and the spring home buying season has begun, average mortgage rates are also moving down again, according to Freddie Mac's Primary Mortgage Market Survey (PMMS) for the week ending April 10.
The survey shows that 30-year FRMs averaged 4.34% with an average 0.7 point, down from the week before, when they averaged 4.41%. A year ago at this time, the 30-year FRM averaged 3.43%.
The 15-year FRM this week averaged 3.38% with an average 0.6 point, down from last week, when it averaged 3.47%. Comparatively, the 15-year FRM averaged 2.65% at the same time last year.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.09% with an average 0.5 point, down from the week before, when it averaged 3.12%. A year ago, the five-year ARM averaged 2.62%.
The one-year Treasury-indexed ARM averaged 2.41% with an average 0.5 point, down slightly from 2.45% from the week before. At this time last year, the one-year ARM was 2.62%.
Frank Nothaft, vice president and chief economist of Freddie Mac, attributes the ease in rates to the drop in 10-year Treasury yields.
He also notes that although it was below the market consensus, there were 192,000 jobs added in March – following an upward revision in February of 22,000. The 6.7% unemployment rate "held steady," he adds.