According to Freddie Mac’s latest weekly interest rate survey, 30-year and 15-year fixed-rate mortgages fell to their lowest levels since July 2005, marking the third consecutive week of declines.
“Mortgage rates moved down across loan products for the third consecutive week. Average rates on 30-year fixed-rate mortgages (FRMs) and 15-year FRMs are at their lowest since July 2005,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The results from this week’s survey mark the first time in seven years that the average rate on the 15-year FRM is lower than the average rate on 1-year adjustable-rate mortgages (ARMs).”
Interesting, as Freddie Mac reported earlier this week that adjustable-rate mortgages were losing their edge.
For the week ending January 17, the 30-year averaged 5.69 percent, down from 5.87 percent the week prior, while the 15-year dipped to 5.21 percent from 5.43 percent.
Adjustable-rate mortgages also improved, with the five-year Treasury ARM falling to 5.40 percent from 5.63 percent last week, as the one-year dropped to 5.26 percent from 5.37 percent.
A year ago, the 30-year averaged 6.23 percent, the 15-year averaged 5.98 percent, the five-year 6.04 percent, and the one-year 5.51 percent.
“The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4 percent from November’s level,” said Nothaft.
“Particularly weak were sales of building materials, garden equipment and supply stores, which fell by 2.9 percent from the previous month. The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates.”
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