Fixed rates drop on weaker economic data

by MPA06 Mar 2014
Fixed rates moved down this week in the wake of weaker-than-expected housing and economic data, according to Freddie Mac.

“Mortgage rates were down this week as real GDP was revised downwards to 2.4 percent growth in the fourth quarter of 2013. Fixed residential investment negatively contributed to GDP decreasing 8.7 percent in the fourth quarter,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The private sector added an estimated 139,000 jobs in February, which was below the market consensus and followed a downward revision of 48,000 jobs in January, according to the ADP Research Institute.”

The 30-year fixed-rate mortgage averaged 4.28% this week, down from last week’s average of 4.37%. Last year at this time, the 30-year FRM averaged 3.52%.

The 15-year FRM averaged 3.32% this week, up from last week’s average of 3.39%. Last year at this time, the 15-year FRM averaged 2.76%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage also crept down, averaging 3.03% this week. Last week, the 5-year ARM averaged 3.05%. Twelve months ago, the 5-year ARM averaged 2.63%.

The 1-year Treasury-indexed ARM held steady this week at 2.52%. Last year at this time, the 1-year ARM averaged 2.63%.


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