Rates Drop Again, Even with Fed Bond Buy Cuts’ Progress
Average fixed rates moved lower during the week ending Jan. 30, even with the Federal Open Market Committee's recent move forward with rate-lowering bond purchases.
The rate for a 30-year fixed-rate mortgage dropped seven basis points to 4.32% from week-ago averages, and the average 15-year FRM fell by four basis points to 3.4%.
Below-consensus home sales figures and first drop in Standard & Poor's closely watched Case-Shiller home price index since November 2012 contributed to the slight easing in rates during the week, according to Freddie Mac chief economist and vice president Frank Nothaft.
The average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages also fell, dropping three basis points to 3.12%.
The only rate to rise was the one-year Treasury ARM rate, which was up one basis point week-to-week at 2.55%. This also is the only rate lower now than it was a year ago.
At one point recently the 30-year rate was around 1% higher than it was at the same time in 2013, but now the gap between year-ago 30-year rates is less than 1%.
Rates were as follows a year ago: 30-year, 3.53%; 15-year, 2.81%; five-year Treasury hybrid, 2.7%; and one-year Treasury ARM, 2.59%.
Average points remain lowest for the one-year Treasury adjustable-rate mortgage at 0.4 of a point, followed by 0.5 of a point for five-year Treasury hybrids, 0.6 of a point for 15-year FRMs and 0.7 of a point for 30-year FRMs.