Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates falling over the last week amid signs of a weakening economic recovery. The 30-year fixed-rate mortgage (FRM) averaged 4.41 percent with an average 0.7 point for the week ending Jan. 16, 2014, down from last week when it averaged 4.51 percent. A year ago at this time, the 30-year FRM averaged 3.38 percent. The 15-year FRM this week averaged 3.45 percent with an average 0.7 point, down from last week when it averaged 3.56 percent. A year ago at this time, the 15-year FRM averaged 2.66 percent.
"Mortgage rates drifted downward this week amid signs of a weakening economic recovery," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The economy added 74,000 jobs in December, less than the market consensus forecast. Retail sales rose 0.2 percent in December, which was nearly half of November's 0.4 percent increase. Meanwhile, the unemployment rate fell to 6.7 percent which was the lowest since October 2008."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.10 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. A year ago, the five-year ARM averaged 2.67 percent. The one-year Treasury-indexed ARM averaged 2.56 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.57 percent.