Fixed-Rates Continue to Drop Closer to Four Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), reflecting that weaker housing data is putting downward pressure on average fixed mortgage rates, as this week, the 30-year fixed-rate mortgage (FRM) averaged 4.23 percent with an average 0.7 point for the week ending Feb. 6, 2014, down from the previous week when it averaged 4.32 percent. A year ago at this time, the 30-year FRM averaged 3.53 percent. Also this week, the 15-year FRM averaged 3.33 percent with an average 0.7 point, down from last week when it averaged 3.40 percent. A year ago at this time, the 15-year FRM averaged 2.77 percent.  "Mortgage rates fell further this week following the release of weaker housing data," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The pending home sales index fell 8.7 percent in December to its lowest level since October 2011. Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010. Also, theInstitute for Supply Management reported a significant slowing in growth in the manufacturing industry in December than the market consensus forecast." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08 percent this week with an average 0.5 point, down from last week when it averaged 3.12 percent. A year ago, the five-year ARM averaged 2.63 percent. The one-year Treasury-indexed ARM averaged 2.51 percent this week with an average 0.5 point, down from last week when it averaged 2.55 percent. At this time last year, the one-year ARM averaged 2.53 percent.