Average fixed mortgage rates reversed course after rising last week, falling amid weaker than expected housing and economic data.
Fixed-rate mortgages rates are once again back near their May 23, 2013 lows, which reflected in the uptick in refinancing applications.
“Mortgage rates fell this week following the release of weaker than expected pending home sales, which fell 3.7% in December,” said Len Kiefer, deputy chief economist for Freddie Mac. “Moreover, real GDP growth for the fourth quarter was 2.6% and the Institute for Supply Management reported slower growth in manufacturing last month, both missing market consensus forecasts.”
The 30-year fixed-rate mortgage averaged 3.59% with an average 0.7 point for the week ending February 5, 2015, down from last week when it averaged 3.66%. A year ago at this time, the 30-year FRM averaged 4.32%.
The 15-year FRM this week averaged 2.92% with an average 0.6 point, down from last week when it averaged 2.98%. A year ago at this time, the 15-year FRM averaged 3.40%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82% this week with an average 0.4 point, down from last week when it averaged 2.86%. A year ago, the 5-year ARM averaged 3.12%.
The 1-year Treasury-indexed ARM averaged 2.39% this week with an average 0.4 point, up from last week when it averaged 2.38%. At this time last year, the 1-year ARM averaged 2.55%.