Freddie Mac released slightly lower fixed mortgage rates, hovering near all-time lows, revealing signs of a continuously improving economy and low inflation.
The 30-year fixed-rate mortgage averaged 3.39% for the week, a decrease from the 4% average a year ago. The 15-year FRM averaged 2.7%, down from last year’s average rates of 3.31%.
Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage, fell from an average 2.96% last year to 2.74% this year. Last year at this time, the 1-year Treasury-indexed ARM averaged 2.88%, falling to 2.58% this week.
“Mortgage rates remained relatively unchanged this week on signs of a growing economy and low inflation,” said Frank Nothaft, vice president and chief economist of Freddie Mac.
“The economy grew 2% in the third quarter with residential fixed investment contributing 0.3 percentage points to growth,” he said. “The core price index of personal consumer expenditures grew 1.7% between September 2011 and 2012 and was within the Federal Reserve’s preferred target range.”