Freddie Survey Finds Long-term Rates Under 5% Again

The average rate for 30-year fixed-rate mortgages was back below 5% in the most recent week covered by the Freddie Mac Primary Mortgage Market Survey, but just barely so. The average rate for a 30-year fixed-rate mortgage during the week ending Jan. 21 was 4.99%, down from 5.06% the previous week and from 5.12% a year ago. The average rate for a 15-year FRM was 4.40% during the most recent week, down from 4.45% a week ago and 4.80% a year ago. The average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages also fell to 4.27% from 4.32% a week ago and 5.24% a year ago. The average one-year Treasury ARM rate dropped to 4.32% from 4.39% a week ago and 4.92% a year ago. Average points for the most recent week were as follows: 0.7 for 30-year FRMs and 0.6 for all other aforementioned types of mortgages. "Fixed mortgage rates followed bond yields lower for the third consecutive week, pushing 30-year mortgages below 5% once more," said Frank Nothaft, Freddie Mac vice president and chief economist. "Similarly, ARM rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserves target rate following its upcoming committee meeting."