Fixed rates fall for second week

by MPA24 Jan 2014
Fixed mortgage rates drifted lower for the second week in a row this week as inflation remained low, according to data released Thursday by Freddie Mac.

“Mortgage rates were flat to down a little this week amid reports that inflation remains subdued, said Frank Nothaft, vice president and chief economist for Freddie Mac. “The Consumer Price Index was up to 0.3 percent in December after being unchanged in November. For the year as a whole, consumer prices rose just 1.5 percent in 2013.”

The 30-year fixed-rate mortgage averaged 4.39% this week, down from last week’s 4.41%, according to Freddie Mac. Last year at this time, the 30-year FRM averaged 3.42%.

The 15-year FRM averaged 3.44%, down from last week’s 3.45%. Last year at this time, the 15-year FRM averaged 2.71%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage ticked up, rising to 3.15% this week from last week’s 3.10%. Last year at this time, the 5-year ARM averaged 2.67%.

The 1-year Treasury-indexed ARM, meanwhile, dropped fractionally to 2.54% from last week’s 2.56%. A year ago, the 1-year ARM averaged 2.57%.


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