Weak Housing Market Leads to Week of Lower Mortgage Rates

Freddie Mac released its weekly update on national mortgage rates on Thursday morning, showing continued declines in mortgage rates despite the Fed's intention to continue tapering bond purchases.

Thirty-year fixed-rate mortgages (FRMs) declined nine basis points over the past week, falling to 4.23%. Fifteen-year FRMs likewise declined, down seven b.p. to 3.33%.

Adjustable-rate mortgages (ARMs) performed similarly, with 5/1 ARMs and 1-year ARMs each shedding four basis points, falling to 3.08% and 2.51%, respectively.

Commenting on the results, Freddie Mac vice president and chief economist Frank Nothaft cited significant weakening in the housing market as reasons for the falling rates. Noted Nothaft: "The pending home sales index fell 8.7 percent in December to its lowest level since October 2011. Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010."

Weak economic data elsewhere in the economy is also apparently doing its part to keep rates low. Earlier this week, the Institute for Supply Management reported significant slowing in growth in the manufacturing industry in December.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2827138, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:38:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement