Freddie Mac released the results of its Primary Mortgage Market Survey last week, showing average fixed mortgage rates fell for the third consecutive week amid weakened consumer spending and as the housing market continues its recovery.
The 30-year fixed-rate mortgage averaged 3.41 percent, down from 3.43 percent for the week of April 11. The 15-year FRM also fell slightly to 2.64 percent from 2.65 percent the previous week. The 15-year FRM averaged 3.13 percent during the week of April 18 last year.
The five-year Treasury-indexed adjustable-rate mortgage averaged 2.6 percent, a decrease from 2.62 percent the previous week. The one-year Treasury-indexed ARM increased slightly from 2.62 percent the week of April 11 to 2.63 percent.
“Mortgage rates nudged lower this week as consumer spending showed signs of weakness,” Frank Nothaft, the vice president and chief economist at Freddie Mac, said. “Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains.”