Seven Consecutive Weeks of Mortgage Rates Below the Four Percent Mark
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average mortgage rates changing little amid mixed economic data. The 30-year fixed-rate mortgage (FRM) dipped slightly to 3.88 percent to a new all-time record low for the week ending Jan. 19, marking the seventh consecutive week the 30-year FRM was below the four percent mark. Last week, the FRM stood at 3.89 percent, and last year at this time, the 30-year FRM averaged 4.74 percent. The 15-year FRM averaged 3.17 percent for the week with an average 0.8 point, up from last week when it averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.05 percent. "Mortgage rates were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports," said Frank Nothaft, vice president and chief economist, Freddie Mac. "On the consumer front, retail sales edged up only 0.1 percent in December, but the Reuters/University of Michigan sentiment index continued to climb in January to the highest reading since February 2011." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent, with an average 0.7 point, matching last week when it averaged 2.82 percent. A year ago, the five-year ARM averaged 3.69 percent. Meanwhile, the one-year Treasury-indexed ARM averaged 2.74 percent for the week with an average 0.6 point, down from last week when it averaged 2.76 percent. At this time last year, the one-year ARM averaged 3.25 percent. "On the business side, industrial production rose 0.4 percent in December, slightly below the market consensus forecast, and the core producer price index rose faster than market expectations," said Nothaft. "Finally, on the home construction front, builder confidence rose for the fourth consecutive month in January to the highest level since June 2007."