Recent information released in Freddie Mac's Primary Mortgage Market Survey for the week ending April 4 saw a slight drop in fixed-rate mortgages and a varied change for adjustable-rate mortgage products.
Having fluctuated considerably during the last two months, 30-year FRMs afforded consumers a number of opportunities to take advantage - and the recovery of the national housing market reportedly benefited substantially. Last week, average 30-year FRMs moved down from the previous level of 3.57 percent and was recorded at 3.54 percent. Average 15-year FRMs also declined slightly, moving down from 2.76 percent to register at 2.74 percent. As well as on a weekly basis, mortgage records show these products exhibited yearly improvement, as the same week in 2012 had 30-year FRMs logged at 3.98 percent and 15-year FRMs at 3.21 percent.
"Fixed mortgage rates dipped slightly while the manufacturing industry showed signs of slowing," said Frank Nothaft, vice president and chief economist of Freddie Mac. "Regionally, both the Chicago and Milwaukee purchasing manager reports for March fell below the market consensus forecast. On a national scale, both the ISM manufacturing and non-manufacturing indexes also showed reductions in growth."
Freddie Mac noted that adjustable rate mortgages showed both decreases and increases last week. Five-year treasury-indexed hybrid ARMs were recorded at 2.65 percent, having slid from 2.68 percent. One-year treasury-indexes hybrid ARMs averaged 2.63 percent, showing a small increase from the pervious week's level of 2.62 percent. Although the recent figures show differing changes, year-over-year progress is apparent, as five-year ARMs were marked at 2.86 percent and one-year ARMs were seen at 2.78 percent during the same week last year.
Majority of consumers desire to achieve homeownership
The drops in mortgage rates can be seen as very advantageous to consumers considering purchasing property, as they may be able to obtain affordable home loans. A recent survey commissioned by the MacArthur Foundation and completed by Hart Research Associates detailed that a strong desire among Americans to own a home is still present.
The report, titled How Housing Matters Survey, was conducted through telephone interviews of 1,433 adults between late February and early March and found that seven in 10 renters aspire to buy a house. However, even amid bolstering economic conditions and a strengthening property data, the sentiment of national residents was observed as largely pessimistic. A reported 58 percent of consumers believe the nation is still in the middle of the financial crisis and 19 percent believe the worst is yet to come.