Fixed mortgage rates fall for second consecutive week

mortgage rateData released on Thursday by Freddie Mac showed average fixed mortgage rates fell for the second consecutive week.

“Mortgage rates eased for the second consecutive week which should help to alleviate market concerns of a slowdown in the housing market,” Freddie Mac Vice President and Chief Economist Frank Nothaft said. “Thus far, existing home sales for June were the second highest since November 2009 and new home sales were the strongest since May 2008. In addition, the low inventories of homes for purchase are putting upward pressure on house prices. For instance, the Federal Housing Finance Administration purchase-only house price index increased for the 16th consecutive month in May and was 7.3 percent above the May 2012 figure; May’s index level was the highest since September 2008.”

The 30-year fixed-rate mortgage fell from 4.37 percent to 4.31 percent last week. The 30-year FRM averaged 3.49 percent this time last year. The 15-year FRM fell to 3.39 percent last week from 3.41 percent. The 15-year FRM averaged 2.8 percent this time last year.

The five-year adjustable-rate mortgage averaged 3.16 percent last week, down from 3.17 percent the week prior. One year ago, the five-year ARM averaged 2.74 percent. The one-year ARM averaged 2.65 percent last week, compared to 2.66 percent the week prior. The one-year ARM averaged 2.71 percent this time last year.

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