U.S. Fixed Mortgage Rates Resume Downward Trajectory

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According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the average fixed mortgage rate, after ticking-up slightly last week, is reversing course and falling amid weaker than expected housing and economic data. Fixed-rate mortgages rates are once again back near their May 2013 lows.

Len Kiefer, deputy chief economist of Freddie Mac says, "Mortgage rates fell this week following the release of weaker than expected pending home sales, which fell 3.7 percent in December. Moreover, real GDP growth for the fourth quarter was 2.6 percent and the Institute for Supply Management reported slower growth in manufacturing last month, both missing market consensus forecasts."

Freddie Mac Report Facts:

• 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.7 point for the week ending February 5, 2015, down from last week when it averaged 3.66 percent. A year ago at this time, the 30-year FRM averaged 4.32 percent.

• 15-year FRM this week averaged 2.92 percent with an average 0.6 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.40 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.4 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.12 percent.

• 1-year Treasury-indexed ARM averaged 2.39 percent this week with an average 0.4 point, up from last week when it averaged 2.38 percent. At this time last year, the 1-year ARM averaged 2.55 percent.