Average weekly mortgage rates continued their “How low can they go?” trend in Freddie Mac's primary market survey, declining slightly to another round of record lows.
The average rate for a 30-year fixed-rate mortgage during the week ending Jan. 12 slid two more basis points to 3.89% with an average of 0.7 of a point. A year ago, this rate averaged 4.71%.
During the most recent week, the average 15-year FRM rate dropped seven basis points to 3.16% with an average of 0.8 of a point. A year ago, this rate averaged 4.08%.
The average rate for a five-year, Treasury-indexed hybrid adjustable-rate mortgage during the week ending Jan. 12 fell four basis points to 2.82% with an average of 0.7 of a point. A year ago, this rate averaged 3.72%.
The average one-year Treasury ARM rate during the most recent week decreased by four basis points to 2.76% with an average of 0.6 of a point. A year ago, this rate averaged 3.23%.
Although there were signs of improvement in some economic indicators driving the rate-setting markets in the past week, when taken with other indicators suggesting employment remains historically low, views of the economy remain mixed.
While the Fed's Beige Book regional economic review, for example, suggested some real estate and lending is showing slight signs of improvement, Freddie Mac vice president and chief economist Frank Nothaft notes in his weekly rate report that it also shows the extent to which many industries hired at the end of last year was limited.
