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April 23, 2014

Weaker Economic Data Pushes Mortgage Rates Lower

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Weaker Economic Data Pushes Mortgage Rates Lower

The average for fixed-rate mortgages fell this week on signs of a softening economy, Freddie Mac reports in its weekly mortgage market report. 

Frank Nothaft, Freddie Mac’s chief economist, attributes the lower rates to a sluggish economy that added 74,000 jobs in December, which was less than the market consensus forecast. The unemployment rate remains high at 6.7 percent -- but still it’s at its lowest level since October 2008, he notes. 

Freddie Mac reports the following national averages on mortgage rates for the week ending Jan. 16: 

  • 30-year fixed-rate mortgages: averaged 4.41 percent, with an average 0.7 point, dropping from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.38 percent. 
  • 15-year fixed-rate mortgages: averaged 3.45 percent, with an average 0.7 point, dropping from last week’s 3.56 percent average. A year ago, 15-year rates averaged 2.66 percent. 
  • 5-year hybrid adjustable-rate mortgages: averaged 3.10 percent, with an average 0.5 point, falling from last week’s 3.15 percent average. Last year at this time, 5-year ARMs averaged 2.67 percent. 
  • 1-year ARMs: averaged 2.56 percent, with an average 0.5 point, holding the same as last week’s average. A year ago, 1-year ARMs averaged 2.57 percent. 

Source: Freddie Mac

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