Mortgage Rates Dip for Fourth Consecutive Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving lower for the fourth consecutive week with fixed mortgage rates hitting new lows for 2014, as the 30-year fixed-rate mortgage (FRM) averaged 4.14 percent with an average 0.6 point for the week ending May 22, 2014, down from last week when it averaged 4.20 percent. A year ago at this time, the 30-year FRM averaged 3.59 percent. Also this week, the 15-year FRM averaged 3.25 percent with an average 0.5 point, down from last week when it averaged 3.29 percent. A year ago at this time, the 15-year FRM averaged 2.77 percent.  "Mortgage rates continued to decline this week as industrial production slipped by 0.6 percent in April, below the market consensus forecast," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Meanwhile, housing starts jumped 13 percent in April to a seasonally adjusted annual rate of 1,072,000 units, well above expectations. Permits rose to a seasonally adjusted annual rate of 1,080,000 in April, also above expectations." Also this week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent with an average 0.4 point, down from last week when it averaged 3.01 percent. A year ago, the five-year ARM averaged 2.63 percent. The one-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.55 percent.