30-Year Rate Falls to 5.69%

The average 30-year fixed mortgage rate fell from 5.87% to 5.69% over the seven-day period ended Jan. 17, according to Freddie Mac's Primary Mortgage Market Survey. The average 15-year fixed mortgage rate fell from 5.43% to 5.21%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.63% to 5.40%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.37% to 5.26%, Freddie Mac reported. Fees and points averaged 0.4 of a point for 15-year fixed-rate mortgages, 0.5 of a point for 30-year fixed-rate mortgages, and 0.6 of a point for ARMs. "The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4% from November's level," said Frank Nothaft, Freddie Mac's chief economist. "Particularly weak were sales of building materials, garden equipment, and supply stores, which fell by 2.9% from the previous month. The declines aggravated concerns about the well-being of the economy and exerted downward pressure on mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 6.23% and 5.98%, respectively, and the average hybrid and one-year ARM rates were 6.04% and 5.51%, Freddie Mac said. Freddie can be found online at http://www.freddiemac.com.