Fixed-Rates Inch Closer to Five Percent as 2014 Nears

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgage (FRM) having little changed from the previous week as we head into the final days of the year. The 30-year FRM averaged 4.48 percent with an average 0.7 point for the week ending Dec. 26, 2013, up from last week when it averaged 4.47 percent. A year ago at this time, the 30-year FRM averaged 3.35 percent. The 15-year FRM averaged 3.52 percent this week, with an average 0.7 point, up from last week when it averaged 3.51 percent. A year ago at this time, the 15-year FRM averaged 2.65 percent.  "Mortgage rates were little changed this week following mixed economic reports," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Real GDP was revised upwards to 4.1 percent growth in the third quarter of this year. However, existing-home sales dropped 4.3 percent to a seasonally adjusted annual rate of 4,900,000 in November. Also, new home sales fell 2.1 percent to a seasonally adjusted annual rate of 464,000." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged three percent this week with an average 0.4 point, up from last week when it averaged 2.96 percent. A year ago, the five-year ARM averaged 2.70 percent. The one-year Treasury-indexed ARM averaged 2.56 percent this week with an average 0.5 point, down from last week when it averaged 2.57 percent. At this time last year, the one-year ARM averaged 2.56 percent.