Mortgage Rates Fall For 4th Straight Week

Freddie Mac said Thursday that mortgage rates continued to fall, posting the largest four-week decline in 14 years.

The government-sponsored enterprise said its Primary Mortgage Market Survey (PMMS) showed:

• The 30-year fixed-rate mortgage (FRM) averaged 6.33% as of Thursday, down from 6.49% last week . The 30-year FRM averaged 3.1% at this point last year.
• The 15-year fixed-rate mortgage averaged 5.67%, down from 5.76% last week. At this point last year, it averaged 2.38%.

“Mortgage rates decreased for the fourth consecutive week, due to increasing concerns over lackluster economic growth,” said Freddie Mac Chief Economist Sam Khater. “Over the last four weeks, mortgage rates have declined three-quarters of a point, the largest decline since 2008. While the decline in rates has been large, homebuyer sentiment remains low, with no major positive reaction in purchase demand to these lower rates.”

The Mortgage Banker Association (MBA) reported earlier this week that mortgage applications fell nearly 2% last week from a week earlier, which had included the Thanksgiving holiday.

"Despite the ongoing decline in mortgage rates that started in October, prospective homebuyers continue to delay decisions to purchase homes, even as home prices flatten or fall,” said MBA President & CEO Bob Broeksmit. “The average loan size for a purchase application last week was at its lowest level in nearly two years, another indication that home prices are cooling.”

Freddie Mac’s PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.