Freddie Mac mortgage rates decline for second consecutive week
After about a month and half of increases, Freddie Mac mortgage rates declined for a second consecutive week. According to the Freddie Mac Primary Mortgage Market Survey, the 30-year fixed mortgage rate was 4.71% for the week ending Thursday, down from 4.77% the week prior. One year ago, the rate was 5.06%. The rate for a 15-year FRM was down five basis points to 4.08% with an average origination point of 0.7. This rate is also down from one year ago when it was 4.45%. Short-term rates also decreased from a week earlier. Five-year, Treasury-indexed hybrid adjustable rate mortgages dropped to 3.72% from 3.75% the week prior. One-year, Treasury-indexed ARMs were down one basis point to 3.24%. A year ago, the rates for these ARMs were 4.32% and 4.39%, respectively. Mortgage rates followed bond yields over the week, according to Freddie Mac Chief Economist Frank Nothaft. "Bond yields drifted lower following the release of the December employment report, which was weaker than the market consensus forecast and implied that the labor market is still in a sluggish recovery," Nothaft said. The Federal Reserve Beige Book, which was released Wednesday, said that residential real estate remains weak across all parts of the country. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.