The average 30-year, fixed-rate mortgage is at the lowest level in almost nine months as mortgage rates dropped for the fifth consecutive week straight, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-yr, FRM averaged 4.12% for the week ended May 29, 2014, down from last week’s 4.14%, but up from 3.81% a year ago.
The 15-yr, FRM hit 3.21%, declining from 3.25%, and slightly up from 2.98% last year.
In addition, the 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.96%, which is unchanged from last week, but up from 2.66% in 2013.
The 1-year Treasury-indexed ARM came in at 2.41%, compared to 2.43% last week and 2.54% a year prior.
“Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3% but not as much as expected. However, new home sales rose 6.4% in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months,” Frank Nothaft, vice president and chief economist, Freddie Mac.
And Bankrate’s latest mortgage report shows the same results.
Mortgage rates retreated for the fifth week in a row, and the seventh time in the past eight weeks, with the 30-yr, FRM pulling back to 4.25%, from 4.29%.
The 15-year, FRM hit 3.35%, down from 3.38%, while the 5/1 ARM averaged 3.24%, a slight increase from 3.21%.
“A number of factors come into play: disappointing U.S. economic growth at the start of 2014; slower growth in emerging markets; the prospect of European stimulus measures; and geopolitical issues around the globe, to name a few. But the bottom line is this - any time investors get nervous, whatever the reason, it is good news for mortgage shoppers,” Bankrate said.