Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates, fixed and adjustable, moving lower on weaker housing economic indicators as the average 30-year fixed-rate mortgage slid just below 4.00 percent for the week.

• 30-year fixed-rate mortgage (FRM) averaged 3.99 percent with an average 0.7 point for the week ending March 29, 2012, down from last week when it averaged 4.08 percent. Last year at this time, the 30-year FRM averaged 4.86 percent.
• 15-year FRM this week averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.30 percent. A year ago at this time, the 15-year FRM averaged 4.09 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week, with an average 0.8 point, down from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.70 percent.
• 1-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.6 point, down from last week when it averaged 2.84 percent. At this time last year, the 1-year ARM averaged 3.26 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Treasuries are close to yesterday's best levels and MBS are about half-way there following this morning's weaker-than-expected economic data. Additionally, the overnight session offered some small impetus toward lower yields as European headlines, data, and auctions (Italy) combined to generally economically bearish effect. S&P warns of the need for another Greek debt restructuring. Pressure on Portugal and or Spain is mounting to fill the role of the "next Greece," the OECD forecasts for growth in Germany fell from 1.5 pct to 0.1 pct, and EU's Industrial and Business Climates were worse than expected.

All the European news helped bond markets walk in the door slightly improved, but domestic data took things to the next level. Given that Q4 Final GDP was in lien with expectations across the board, the door was open for a weaker than expected Jobless Claims to move markets. The most notable part of claims, however, was the big revision to the previous week's reading, from 348k to 364k. The headline rose to 359k vs a 350k consensus.

After trading around 102-22 before the data, MBS rose to grind around 102-26 and look like they intent to break higher if Treasuries make a similarly bullish move. 10yr yields started the day in the mid 2.19's and are down to 2.164 currently, close to yesterday's low of 2.1605. The extent of the bullishness could be limited by a 7yr auction yet to come at 1pm today. After that, a certain measure of pent up trading sentiment will be released, both from yesterday's 5yr auction as well as this morning's data. Traders merely have to wait for more letters to be flipped over before solving the puzzle.

* GDP +3.0 pct as expected
* PCE Price Index, consumer spending as expected
* Business Investment +5.2 pct, previously +2.8 pct

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.0 percent in the fourth quarter of 2011 (that is, from the third quarter to the fourth quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 1.8 percent.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from private inventory investment, personal consumption expenditures (PCE), nonresidential fixed investment, exports, and residential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The acceleration in real GDP in the fourth quarter primarily reflected an upturn in private inventory investment and accelerations in PCE and in residential fixed investment that were partly offset by a deceleration in nonresidential fixed investment, a downturn in federal government spending, an acceleration in imports, and a deceleration in exports.

Motor vehicle output added 0.47 percentage point to the fourth-quarter change in real GDP after adding 0.12 percentage point to the third-quarter change. Final sales of computers added 0.12 percentage point to the fourth-quarter change in real GDP after adding 0.22 percentage point to the third-quarter change.

*359k vs 350k estimates
*Last week revised up from 348k to 364k

In the week ending March 24, the advance figure for seasonally adjusted initial claims was 359,000, a decrease of 5,000 from the previous week's revised figure of 364,000. The 4-week moving average was 365,000, a decrease of 3,500 from the previous week's revised average of 368,500.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending March 17, a decrease of 0.1 percentage point from the prior week's revised rate of 2.7 percent.

The advance number for seasonally adjusted insured unemployment during the week ending March 17 was 3,340,000, a decrease of 41,000 from the preceding week's revised level of 3,381,000. The 4-week moving average was 3,387,750, a decrease of 21,750 from the preceding week's revised average of 3,409,500.