According to Freddie Mac’s weekly interest rate survey, interest rates were nearly unchanged this week as downward pressure linked to ongoing housing woes offset inflation worries.
“Stronger-than-expected inflation reports and retail sales for November put upward pressure on long-term interest rates late last week,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.
“However, ensuing data releases suggested further weakness in the housing market over November and December and allowed interest rates to drift back down,” Nothaft added. “The net effect left mortgage rates little changed this week.”
The average rate on a 30-year fixed-rate mortgage was 6.14 percent for the week ended December 20, up slightly from 6.11 percent last week.
Freddie said the average rate on the benchmark rate was 6.13 percent a year ago, practically unchanged year-over-year.
The average 15-year fixed-rate loan was 5.79 percent, up marginally from 5.78 percent last week, but below its year-ago level of 5.89 percent.
Five-year adjustable-rate mortgages averaged 5.90 percent this week, up from 5.89 percent last week and slightly below their year-ago average of 5.96 percent.
And finally, one-year Treasury-indexed ARMs averaged 5.51 percent, up from 5.50 percent last week and higher than their average of 5.44 percent last year.
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