Fixed Rates Drop for Third Consecutive Week, Nearing 3.4 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving lower this week amid data showing weaker consumer spending, as the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent with an average 0.7 point for the week ending April 18, 2013, down from last week when it averaged 3.43 percent. Last year at this time, the 30-year FRM averaged 3.90 percent. This marks the third consecutive week fixed-rate mortgages have moved lower as the housing market continues to recover. Also this week, the 15-year FRM this week averaged 2.64 percent with an average 0.7 point, down from last week when it averaged 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.13 percent. "Mortgage rates nudged lower this week as consumer spending showed signs of weakness," said Frank Nothaft, vice president and chief economist of Freddie Mac. "Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.60 percent this week with an average 0.5 point, down from last week when it averaged 2.62 percent. A year ago, the five-year ARM averaged 2.78 percent. The one-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.4 point, up from last week when it averaged 2.62 percent. At this time last year, the one-year ARM averaged 2.81 percent.