Fixed rates drop on weaker housing data

by MPA30 Jan 2014
Fixed mortgage rates moved lower this week following the release of weaker housing numbers, according to data released today by Freddie Mac.

“Mortgage rates eased somewhat as new home sales fell 7 percent in December to a seasonally adjusted pace of 414,000 units, below the consensus,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The S&P/Case-Shiller 20-city composite house price index declined 0.1 percent for the month of November, the first decrease since November 2012.”

The 30-year fixed-rate mortgage averaged 4.32% this week, down from last week’s 4.39%. Last year at this time, the 30-year FRM averaged 3.53%.

The 15-year FRM dropped to 3.40% from last week’s 3.44%. A year ago, the 15-year FRM averaged 2.81%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to 3.12% from last week’s 3.15%. Last year, the 5-year ARM averaged 2.70%.

The 1-year ARM averaged 2.55% this week, a slight increase from last week’s 2.54%. A year ago, the 1-year ARM averaged 2.59%.
 

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