Mortgage rates dipped slightly for a third week in a row during the week ending Jan. 30, according to Freddie Mac's Primary Mortgage Market Survey.
The average rate for a 30-year fixed-rate mortgage (FRM) was 4.32%, a decrease of about 0.7% compared to the previous week, when it averaged 4.39%. A year ago at this time, the 30-year FRM averaged 3.53%.
The average rate for a 15-year FRM was 3.40%, down about 0.6% compared to the previous week, when it averaged 2.81%.
The average rate for a five-year Treasury-indexed, hybrid, adjustable-rate mortgage (ARM) was 3.12%, down about 0.5% compared to the week prior, when it averaged 3.15%. A year ago, the five-year ARM averaged 2.70%.
The average rate for a one-year Treasury-indexed ARM averaged 2.55%, down about 0.4% compared to the week prior, when it averaged 2.54%. At this time last year, the one-year ARM averaged 2.59%.
Frank Nothaft, vice president and chief economist, Freddie Mac, points out that, despite historically low rates, new home sales fell 7% in December to a seasonally adjusted pace of 414,000 units – far below forecasts. He also notes that the S&P/Case-Shiller 20-city composite house price index declined 0.1% for the month of November – the first decrease since November 2012.