U.S. Mortgage Rates Drop Amid Weak Housing Data

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Average mortgage rates in the U.S. dropped for the third week in a row, according to Freddie Mac. 

The 30-year fixed-rate mortgage averaged 4.32 percent this week, down from last week's 4.39 percent. A year ago at this time it was 3.53 percent. 

The third weekly drop comes amid the release of weaker housing data, the report states. 

"Mortgage rates eased somewhat as new home sales fell 7 percent in December to a seasonally adjusted pace of 414,000 units, below the consensus," Frank Nothaft, chief economist, Freddie Mac, said in the report. "The S&P/Case Shiller house price index declined 0.1 percent for the month of November, the first decrease since November 2012."

Yesterday, the Mortgage Bankers Association reported a drop in mortgage applications last week. 

The 15-year fixed-rate mortgage averaged 3.40 percent this week, down from 3.44 percent last week. Last year at this time the average was 2.81 percent. 

The one-year treasury-indexed ARM averaged 2.55 percent, up from last week's 2.54 percent.