Mortgage Rates Dip for the Second Consecutive Week to Start 2014

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) drifting slightly lower for the second consecutive week amid recent reports that inflation remains subdued. The 30-year FRM averaged 4.39 percent with an average 0.7 point for the week ending Jan. 23, 2014, down from last week when it averaged 4.41 percent. A year ago at this time, the 30-year FRM averaged 3.42 percent. The 15-year FRM this week averaged 3.44 percent with an average 0.7 point, down from last week when it averaged 3.45 percent. A year ago at this time, the 15-year FRM averaged 2.71 percent.   "Mortgage rates were flat to down a little this week amid reports that inflation remains subdued," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The Consumer Price Index was up to 0.3 percent in December after being unchanged in November. For the year as a whole, consumer prices rose just 1.5 percent in 2013." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.15 percent this week with an average 0.5 point, up from last week when it averaged 3.10 percent. A year ago, the five-year ARM averaged 2.67 percent. The one-year Treasury-indexed ARM averaged 2.54 percent this week with an average 0.5 point, down from last week when it averaged 2.56 percent. At this time last year, the one-year ARM averaged 2.57 percent.