McLEAN, Va. (7/7/14)--Mortgage rates eased slightly lower heading into the extended July 4 weekend, but remained below year-ago rates, according to the latest data released Thursday by Freddie Mac.
"Mortgage rates were little changed from the previous week and remain below levels seen the same time last year, which should provide some help with homebuyer affordability in many markets," said Frank Nothaft, Freddie Mac vice president and chief economist. "Recent housing data was better with pending home sales up 6.1% in May, and overall construction spending showing a slight improvement with private residential spending now up 7.5% on yearly basis."
The 30-year fixed-rate average dropped to 4.12%, matching its lowest level of the year set in late May. The rate was 4.14% a week ago and 4.29% one year ago. Since starting the year at 4.53%, the 30-year fixed rate has fallen 41 basis points (Washington Post July 3).
The 15-year fixed-rate average was unchanged from the previous week at 3.22%. It was 3.39% a year ago. The 15-year fixed rate is down 33 basis points from Jan 1.
Hybrid adjustable rate mortgages also held steady. The five-year ARM average was 2.98%, the same as a week ago and just the third time this year it has been below 3%. It was 3.1% a year ago.
The one-year ARM average fell to 2.38%. It was 2.4% a week ago.
Mortgage applications fell for a fifth time in six weeks, the Mortgage Bankers Association said Wednesday. The group's purchase measure decreased 0.7%, while the refinancing gauge advanced 0.1%.