According to Freddie Mac’s (OTC:FMCC) latest Primary Mortgage Market Survey  (PMMS), all mortgage products increased this week except the 1-year ARM. This brings 30-year mortgage rates back to levels seen in May of this year, while the 15-year ties levels not seen since June. Even so, mortgage rates remain incredibly low.

The 30-year fixed-rate mortgage (FRM) averaged 4.86%, with an average 0.8 point for the week ending December 30, 2010, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.14 percent.

For the year as a whole, 30-year fixed mortgage rates averaged just below 4.7 percent in 2010, which represented the lowest annual average since 1955 when secondary market yields on FHA mortgages were above 4.6 percent and the average price of a home was $22,000.

For anyone who is waiting for mortgage rates to inch lower, the bond market faces a major hurdle this Friday, January 7, 2011 when the December Employment Situation Report is released.  Floating into and through this economic data release is a high risk event. Which means the best execution 30 year fixed mortgage rate could move 0.25% to 0.375% higher. It could also move back down firmly to 4.75% or even 4.50% if the bond market experiences a sustained recovery rally.

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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