Mortgage rates, which have largely been playing the one week up, next week down game, actually fell for a second straight week, according to mortgage financier Freddie Mac.
The benchmark 30-year fixed-rate mortgage averaged 6.14 percent for the week ending November 13, down from 6.20 percent a week ago and 6.24 percent this time last year.
“Long-term mortgage rates fell slightly this week as signs the overall economy is weakening brought interest rates down market-wide,” said Frank Nothaft, Freddie Mac chief economist, in a statement.
“In addition, the actions of the Fed in recent weeks to assist commercial paper markets appear to be thawing part of the credit freeze that has gripped capital markets in the U.S., giving banks some breathing room.”
The 15-year fixed dipped to 5.81 percent from 5.88 percent last week, and actually matched its year-ago level of 5.88 percent.
Meanwhile, adjustable-rate mortgages were moving in opposite directions.
The five-year ARM slipped to 5.98 percent from 6.19 percent, while the one-year ARM climbed to 5.33 percent from 5.25 percent.
A year ago, the five-year ARM averaged 5.96 percent, while the one-year ARM stood at 5.50 percent.
Freddie’s weekly survey pertains to conforming loan amounts with a loan-to-value of 80 percent, not necessarily the norm for all borrowers.
Jumbo loan rates are an entirely different story, as evidenced by the 9.25 percent rate seen over at Wells Fargo for a 30-year fixed.
However, their five-year jumbo ARM is pricing at 6.75 percent, much more reasonable assuming the borrower has the risk appetite to lock in a shorter term fixed product.
(photo: aturkus)
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