Rates down on weak housing data

by MPA07 Feb 2014
Mortgage rates fell again this week, pushed downward by weaker housing numbers, according to data released Thursday by Freddie Mac.

“The pending home sales index fell 8.7 percent in December to its lowest level since October 2011. Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“Also, the Institute for Supply Management reported a significant slowing in growth in the manufacturing industry in December than the market consensus forecast.”

Rates for the 30-year fixed-rate mortgage averaged 4.23% this week, down from last week’s average of 4.32%. Last year at this time, the 30-year FRM averaged 3.53%.

The 15-year FRM averaged 3.33% this week, down from last week’s average of 3.40%. a year ago, the 15-year FRM averaged 2.77%.
The 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 3.08% this week, down from 3.40% last week. Last year, the 5-year ARM averaged 2.63%.

The 1-year Treasury-indexed ARM averaged 2.51%, down from last week’s 2.55%. Last year, the 1-year ARM averaged 2.53%.

COMMENTS

Poll

Is TILA-RESPA a good or bad thing long term?