Mortgage rates drop for second straight week

by Ryan Smith13 Jan 2017
Freddie Mac’s latest mortgage market survey shows mortgage rates falling for the second straight week as Treasury yields moved lower.

“After absorbing a mixed December jobs report; the 10-year Treasury yield fell 8 basis points. The 30-year mortgage rate moved in tandem with Treasury yields falling 8 basis points to 4.12%, the second decline since the presidential election,” said Sean Becketti, Freddie Mac chief economist.
“The December jobs report showed 156,000 jobs added, barely meeting many experts' expectations, while wage growth was at the high end of expectations at 0.4%. If strong wage gains persist, they may push inflation and interest rates higher.”

Last week, the 30-year fixed-rate mortgage averaged 4.20%. A year ago at this time, it was 3.92%. The 15-year FRM also moved lower, averaging 3.37% this week after last week’s average of 3.44%. A year ago, the 15-year FRM averaged 3.19%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage also dropped. The average interest rate for the 5-year ARM was 3.23% this week, down from last week’s 3.33%. Last year at this time, the 5-year ARM averaged 3.01%.

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