Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), which shows rates increasing from the previous week influenced by inflationary and ongoing geopolitical concerns. The 30-year fixed-rate mortgage matches its February 3, 2011 level of 4.81 percent.
- Compared to fourth quarter 2010, Americans are more optimistic about home prices, the economy, and personal finances. However, rising household expenses (up by 9 percentage points since June 2010) may require Americans to remain cautions about the recovery.
- While perceptions of investment safety have been declining, 57 percent of Americans believe that homeownership has a lot of potential as an investment, ranking higher than other investments, such as buying stocks or putting money into an IRA or 401(k) plan.
- Fewer Underwater Borrowers think their savings are sufficient and more are stressed about their debt. Feeling less secure financially, more Underwater Borrowers think it is okay to default if facing financial distress. However, a significant share of Underwater Borrowers remain optimistic, with 45 percent expecting their personal finances to get better over the next year and 35 percent expecting home prices to go up.