Weak Economic News Drops Fixed-Rates to 4.28 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving down following weaker than expected economic and housing news, as the 30-year fixed-rate mortgage (FRM) averaged 4.28 percent with an average 0.7 point for the week ending March 6, 2014, down from last week when it averaged 4.37 percent. A year ago at this time, the 30-year FRM averaged 3.52 percent. Also, it was the 15-year FRM averaging 3.32 percent for the week, with an average 0.6 point, down from last week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 2.76 percent.  "Mortgage rates were down this week as real GDP was revised downwards to 2.4 percent growth in the fourth quarter of 2013," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Fixed residential investment negatively contributed to GDP decreasing 8.7 percent in the fourth quarter. The private sector added an estimated 139,000 jobs in February, which was below the market consensus and followed a downward revision of 48,000 jobs in January, according to the ADP Research Institute." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03 percent this week with an average 0.4 point, down from last week when it averaged 3.05 percent. A year ago, the five-year ARM averaged 2.63 percent. The one-year Treasury-indexed ARM averaged 2.52 percent this week with an average 0.3 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.63 percent.