DSNews BY: Tory Barringer, 1/16/2014
December’s “discouraging jobs report” caused mortgage rates to pull back once again this week.
“discouraging jobs report” weekly Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) falling to an average rate of 4.41 percent (0.7 point) for the week ending January 16, down from 4.51 percent last week. A year ago, the 30-year fixed average sat at 3.38 percent.
The 15-year FRM averaged 3.45 percent (0.7 point) this week, down from 3.56 percent previously.
Adjustable rates were flat to down this week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.10 percent (0.5 point), down from 3.15 percent, while the 1-year ARM averaged 2.56 percent (0.5 point), unchanged from last week, the GSE reports.
“”Mortgage rates drifted downward this week amid signs of a weakening economic recovery,”” explained Freddie Mac chief economist Frank Nothaft.
In addition to December’s disappointing jobs report–which showed payroll growth of only 74,000 along with a substantial drop in labor participation–Nothaft cited weak retail sales numbers as another factor in this week’s rate movements.
Finance site “discouraging jobs report” also reported declines in fixed and adjustable rates for the week. The site’s weekly national survey shows the 30-year fixed falling from 4.64 percent to 4.57 percent, while the 15-year fixed was down from 3.69 percent to 3.62 percent.
The 5/1 ARM, meanwhile, fell to 3.40 percent, according to Bankrate’s data. The company’s report put it at 3.46 percent last week.
