Freddie Mac: Fixed Mortgage Rates Fell A Little More

Posted by Patrick Barnard on January 15, 2016 No Comments
Categories : Residential Mortgage

Fixed mortgage rates fell slightly for a second week during the week ended Jan. 14, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.92%, down from 3.97% the previous week. A year ago at this time, the 30-year FRM averaged 3.66%.

The average rate for a 15-year FRM was 3.19%, down from 3.26%. A year ago at this time, the 15-year FRM averaged 2.98%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 3.01%, down from 3.09% the previous week. A year ago, the five-year ARM averaged 2.90%.

‘Long-term Treasury yields continue to drop, dragging mortgage rates down with them,’ says Sean Becketti, chief economist for Freddie Mac, in a release. ‘Turbulence in overseas financial markets is generating a flight-to-quality, which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations. The net effect on the 30-year mortgage rate was a five-basis-point drop to 3.92 percent.’

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