Mortgage rates took a dive after two weeks of steady increases on reports of weak manufacturing growth and declining inflation rates, the most recent Freddie Mac Primary Mortgage Market survey said.

The 30-year, fixed-rate ticked back down, falling to 4.22% from 4.35% last week and is up from 3.31% a year ago.

"Fixed mortgage rates fell this week on reports of weaker manufacturing growth and declines in overall inflation rates," said Frank Nothaft, vice president and chief economis with Freddie Mac.

"Industrial production slipped by 0.1% in October, below the market consensus forecast of a 0.2% gain. The consumer price index also unexpectedly fell during the month. On an annual basis, consumer prices are up 1%, the smallest increase since October 2009," Nothaft added.

Also falling, the 15-year, FRM decreased to 3.27% compared to 3.35% last week and 2.63% a year ago.

The 5-year Treasury-index adjustable-rate mortgage dipped to 2.95%, down from 3.01% a week earlier but up from 2.74% a year ago.

Additionally, the 1-year Treasury-index ARM remained frozen at 2.61%, but is only slightly higher than 2.56% a year ago.

Following suit, Bankrate noted, "After two consecutive weeks moving to the upside, mortgage rates reversed course following Federal Reserve Chair nominee Janet Yellen's comment that ‘there is more the Fed can do.'"

"Investors took this to mean that the Fed will not be in a hurry to rein in stimulus or boost interest rates, and that helped bring both bond yields and mortgage rates back down. Mortgage rates are closely related to yields on long-term government bonds," Bankrate added.

As a result, Bankrate’s 30-year FRM fell to 4.39% from 4.48% a week earlier.

Meanwhile, the 15-year, FRM declined to 3.42%, down from 3.49%, while the 5/1 ARM dipped to 3.28% from 3.33%. 

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