Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates dropping to new lows in 2014, as 10-year Treasury yields closed at their lowest level since May 2013. The 30-year fixed-rate mortgage (FRM) averaged 3.80 percent, with an average 0.6 point for the week ending Dec. 18, 2014, down from last week when it averaged 3.93 percent. A year ago at this time, the 30-year FRM averaged 4.47 percent. The 15-year FRM averaged 3.09 percent with an average 0.6 point, down from last week when it averaged 3.20 percent. A year ago at this time, the 15-year FRM averaged 3.52 percent.
"The 30-year fixed mortgage rate dropped to its lowest point of 2014 this week. Mortgage rates fell along with 10-year Treasury yields, which closed at their lowest level since May 2013," said Frank Nothaft, vice president and chief economist, Freddie Mac. "November housing starts came in at a seasonally adjusted annual rate of 1.028 million starts, down 1.6 percent from an upwardly-revised October value. Housing starts for the calendar year will likely come in around one million, above the 2013 pace, but lower than forecasters had expected at the start of 2014. Consumer prices declined more than expected in November, with CPI contracting 0.3 percent."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 2.98 percent. A year ago, the five-year ARM averaged three percent. The one-year Treasury-indexed ARM averaged 2.38 percent this week, with an average 0.4 point, down from last week when it averaged 2.40 percent. At this time last year, the one-year ARM averaged 2.56 percent.
