Fixed mortgage rates eased slightly during the week ending May 15 to reach a six-month low, according to Freddie Mac's Primary Mortgage Market Survey.
It was the third consecutive week that fixed mortgage rates dipped downward, according to the report.
The average rate for a 30-year fixed-rate mortgage (FRM) was 4.20%, down slightly from 4.21% the previous week. A year ago at this time, the 30-year FRM averaged 3.51%.
The average rate for a 15-year FRM was 3.29%, down from 3.32% the week prior. A year ago at this time, the 15-year FRM averaged 2.69%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.01%, down from 3.05% the previous week. A year ago, the five-year ARM averaged 2.62%.
The average rate for a one-year Treasury-indexed ARM was 2.43%, unchanged from the previous week. At this time last year, the one-year ARM averaged 2.55%.
Frank Nothaft, vice president and chief economist for Freddie Mac, says, ‘These lower than expected rates are welcome news with the spring home buying season underway and may even provide those who haven't already refinanced possibly a reason to take another look.’
‘Of the few releases, advanced retail sales rose 0.1 percent in April, but below the market forecast consensus of a 0.4 percent increase,’ Nothaft adds. ‘Also, the Producer Price Index for final demand rose 0.6 percent in April, which followed a 0.5 percent boost from the prior month.’
