Another Week Another Drop in Mortgage Rates

first_img This week brought more news of declines in mortgage interest rates, according to releases from “”Freddie Mac””:http://www.freddiemac.com/ and “”Bankrate.com””:http://www.bankrate.com/.[IMAGE]In its weekly published Primary Mortgage Market Survey, Freddie Mac put the average 30-year fixed mortgage rate at 4.23 percent (0.7 point) for the week ending February 6, down from 4.32 percent previously. A year ago, the 30-year fixed-rate mortgage (FRM) sat at 3.53 percent.The 15-year FRM averaged 3.33 percent (0.7 point) this week, down from last week’s 3.40 percent.Averages on adjustable-rate mortgages (ARMs) also fell, with the 5-year Treasury-indexed hybrid ARM dropping 4 [COLUMN_BREAK]basis points to 3.08 percent (0.5 point) and the 1-year ARM decreasing the same amount to 2.51 percent (0.5 point).Frank Nothaft, VP and chief economist for Freddie Mac, once again pointed to weaker housing data as a factor in this week’s rate changes, noting declines in December “”pending home sales””:https://themreport.com/articles/december-pending-home-sales-weakest-since-2011-2014-01-30 and a “”negative contribution to GDP””:https://themreport.com/articles/gdp-advances-32-in-q4-2014-01-30 from fixed residential investment.””Also, the Institute for Supply Management reported a significant slowing in growth in the manufacturing industry in December than the market consensus forecast,”” Nothaft added.In its own weekly survey, Bankrate reported a drop of 7 basis points in the 30-year fixed average to 4.43 percent, with the 15-year fixed falling 6 points to 3.50 percent.The 5/1 ARM also declined, decreasing 10 basis points to 3.27 percent.””Worries about a slowdown in the U.S. and global economics and continued skittishness about the health of emerging markets is pushing investors into safe haven U.S. Treasury securities,”” Bankrate said in a release. “”This has brought the benchmark 10-year Treasury yield from 3 percent down into the 2.6 percent neighborhood, with mortgage rates hitting levels last seen just before Thanksgiving.”” in Data, Origination Adjustable-Rate Mortgage Agents & Brokers Attorneys & Title Companies Bankrate Fixed-Rate Mortgage Freddie Mac GDP Investors Lenders & Servicers Mortgage Rates Pending-Home Sales Service Providers 2014-02-06 Tory Barringer Another Week, Another Drop in Mortgage Ratescenter_img February 6, 2014 411 Views Sharelast_img

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