Mortgage Rates Change Little Amid Positive Employment Report

MCLEAN, Va., April 7, 2011 /PRNewswire/ — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows the 30-year fixed-rate inching upward for the third consecutive week to 4.87 percent but well below its average of 5.21 percent a year ago, the highest it had been since August 13, 2009.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending April 7, 2011, up from last week when it averaged 4.86 percent. Last year at this time, the 30-year FRM averaged 5.21 percent.  

• 15-year FRM this week averaged 4.10 percent with an average 0.7 point, up from last week when it averaged 4.09 percent. A year ago at this time, the 15-year FRM averaged 4.52 percent.  

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, up from last week when it averaged 3.70 percent. A year ago, the 5-year ARM averaged 4.25 percent.

• 1-year Treasury-indexed ARM averaged 3.22 percent this week with an average 0.7 point, down from last week when it averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.14 percent.  

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions.

Quotes

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

• “Mortgage rates were little changed after an encouraging employment report from the Bureau of Labor Statistics. The economy added 216,000 jobs in March and the unemployment rate fell for the fifth consecutive month to 8.8 percent marking the lowest rate in two years. Additionally, the private sector has gained 560,000 workers in the first quarter of this year, which represents the largest quarterly increase since the first quarter of 2006.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter: @FreddieMac

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. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac

For further information: Chad Wandler, +1-703-903-2446, Chad_Wandler@FreddieMac.com

Manhattan rents are on the rise as nation's economy recovers, but available apartments still scarce

BY Phyllis Furman
DAILY NEWS BUSINESS WRITER

Thursday, April 7th 2011, 4:00 AM

Bonifacio/News

A recovering economy means that Manhattan rents are on the rise while inventory is shrinking.

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The good old days for Manhattan renters are history.

As the economy improved, rents rose and inventory shrunk in the first three months of the year, according to reports from two brokerage firms to be released today.

The median rent for a Manhattan apartment when landlord concessions were taken into account was $2,808, up 7.4% versus last year, Prudential Douglas Elliman said.

Apartments were snapped up at a faster pace: On average, units stayed on the market for 40 days, down from 86 a year ago. Listings fell 25.6% from last year to 3,874 apartments.

“Renters have to move more quickly,” said Yuval Greenblatt, executive vice president at Prudential Douglas Elliman. “Fewer buildings are offering concessions, and the market is tightening.”

Manhattan’s rental market is rebounding faster than its sales market. While lower unemployment has boosted demand for rentals, the tight credit environment is still making it tough for many to secure a mortgage.

“The rental market is able to respond more quickly to improvements in the economy,” said Jonathan Miller, president of appraisal firm Miller Samuel, which compiled the Prudential Douglas Elliman report.

Gary Malin, president of brokerage firm Citi Habitats, said leasing was active at several pricey new rental buildings, including New York by Gehry in lower Manhattan, where studios go for $2,720.

pfurman@nydailynews.com