WASHINGTON (12/19/14)--Mortgage rates tracked by Freddie Mac continue to drive lower, as the government-sponsored mortgage giant reported Thursday that rates have hit their lowest points for 2014.
According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage fell to 3.8% for the week ending Dec. 18, a drop from the 3.93% seen last week. In 2013, the rate averaged 4.47% (Housingwire.com Dec. 18).
"The 30-year fixed mortgage rate dropped to its lowest point of 2014 this week," said Frank Northaft, vice president/chief economist for Freddie Mac. "Mortgage rates fell along with 10-year Treasury yields, which closed at their lowest level since May 2013."
The 15-year fixed-rate mortgage rate dropped to 3.09% for the week, falling from 3.2% the week prior and 3.52% from its year-ago level.
Further, the five-year Treasury-indexed adjustable-rate mortgage rate slipped to 2.38%, down from 2.98% the prior week, and the one-year Treasury-indexed adjustable-rate mortgage rate fell to 2.38%, a slight drop from 2.98% the prior week.
"November housing starts came in at a seasonally adjusted annual rate of 1.028 million starts, down 1.6% from an upwardly revised October value," Northaft said. "Housing starts for the calendar year will likely come in around 1 million, above the 2013 pace but lower than forecasters had expected at the start of 2014."
Bankrate reported similar falling mortgage rates, with rates dropping for the sixth consecutive week based on its data (Housingwire).
The 30-year fixed-rate mortgage rate tracked by Bankrate fell to 3.94% from 4.03%, and the 15-year fixed rate fell to 3.21% from 3.28%.