Mortgage Rates Take Another Tumble

If anything, the news is consistent: Mortgage rates dropped for a third consecutive week, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).

The 30-year fixed-rate mortgage (FRM) averaged 3.81 percent for the week ending Jan. 21, down from last week’s 3.92 percent. Last year at this time, the 30-year FRM averaged 3.63 percent. The 15-year FRM this week averaged 3.10 percent, slightly under last week’s 3.19 percent last week but over last year’s 2.93 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent this week, down from last week’s 3.01 percent but above last year’s 2.83 percent.

“The Freddie Mac mortgage rate survey had difficulty keeping up with market events this week,” stated Sean Becketti, chief economist at Freddie Mac. “The 30-year mortgage rate dropped 11 basis points to 3.81 percent, the lowest rate in three months. This drop reflected weak inflation—0.7 percent CPI inflation for all of 2015—and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries. However, the survey was largely complete prior to Wednesday's Treasury rally that drove the yield on the 10-year Treasury below two percent, down 29 basis points since the end of 2015.”