The average 30-year mortgage rate tracked by Freddie Mac continued to fall this week, dropping to 4.71%, but it still is 25 basis points above where it was before its dramatic run-up in December.
A week ago the 30-year primary market mortgage rate was 4.77% and a year ago it was 5.06%, according to Freddie, which generally tracks rates on a weekly basis each Thursday. At 4.71% in the most recent week, the current weekly average for the 30-year matches its average for December.
A spokeswoman confirmed that December’s 30-year rate low for the survey was 4.46% during the week ending Dec. 2. Over the course of the month the rate climbed 20 bps to a high of 4.86% in moves many attributed to relative economic optimism. However, since January hit the weekly average rate has dropped.
Frank Nothaft, Freddie’s vice president and chief economist, in his weekly rate report attributed the lower rates in the most recent week to last Friday’s weaker-than-market-consensus employment report and its downward pressure on bond yields.
The average 15-year rate also dropped in the latest week to 4.08% from 4.13% a week ago and 4.45% a year ago.
The average rate for a five-year Treasury-indexed adjustable-rate mortgage was 3.72% during the week ending Jan. 13, down from 3.75% the previous week and 4.32% a year ago.
The average one-year Treasury ARM rate in the latest week was 3.23%, down a hair from 3.24% the previous week and down more than a percentage point from 4.39% a year ago.
Average points in the most recent week were 0.8 for 30-year product, 0.7 for 15-year and five-year Treasury hybrid loans, and 0.6 for one-year Treasury ARMs.
