Mortgage rates continued to inch down during the week ending Feb. 6, according to Freddie Mac's Primary Mortgage Market Survey. It was the fourth consecutive week that rates moved slightly downward.
The average rate for a 30-year fixed-rate mortgage (FRM) was 4.23%, a decrease of about 0.7% compared to the previous week, when it averaged 4.32%. A year ago at this time, the 30-year FRM averaged 3.53%.
The average rate for a 15-year FRM was 3.33%, also a drop of about 0.7% compared to the week prior, when it averaged 3.40%. A year ago at this time, the 15-year FRM averaged 2.77%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.08%, a decrease of about 0.5% compared to the previous week, when it averaged 3.12%. A year ago, the five-year ARM averaged 2.63%.
The average rate for a one-year Treasury-indexed ARM was 2.51%, down about 0.5% compared to the week prior, when it averaged 2.55%. At this time last year, the one-year ARM averaged 2.53%.
In a statement, Frank Nothaft, vice president and chief economist, Freddie Mac, says weaker housing data is putting downward pressure on rates.
‘The pending home sales index fell 8.7 percent in December to its lowest level since October 2011,’ he says. ‘Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010. Also, the Institute for Supply Management reported a significant slowing in growth in the manufacturing industry in December than the market consensus forecast.’