US Mortgage Rates Down For the Third Consecutive Week

The 15-year FRM this week averaged 5.21 percent with an average 0.4 point, downfrom last week when it averaged 5.43 percent.  A year ago at this time, the 15-year FRM averaged 5.98 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.40 percent this week, with an average 0.6 point, down from last week when it averaged 5.63 percent.  A year ago, the 5-year ARM averaged 6.04 percent. 

One-year Treasury-indexed ARMs averaged 5.26 percent this week with an average 0.6 point, downfrom last week when it was 5.37 percent.  At this time last year, the 1-year ARM averaged 5.51 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4 percent from November’s level,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “Particularly weak were sales of building materials, garden equipment and supply stores, which fell by 2.9 percent from the previous month. The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates.

“Mortgage rates moved down across loan products for the third consecutive week. Average rates on 30-year fixed-rate mortgages (FRMs) and 15-year FRMs are at their lowest since July 2005. The results from this week’s survey mark the first time in seven years that the average rate on the 15-year FRM is lower than the average rate on 1-year adjustable-rate mortgages (ARMs).”

 

Freddie Mac Region	PMMS Weights
Northeast	23.9
Southeast	20.4
North Central	14.3
Southwest	11.0
West	30.3

PRIMARY MORTGAGE MARKET SURVEY RESULTS