Mortgage Rates in U.S. End 2014 at Annual Lows

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According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the average fixed mortgage rate moved slightly higher this week, with the average 30-year fixed-rate mortgage ending the year still near annual lows below four percent.

Freddie Mac's chief economist Frank Nothaft says, "While mortgage rates edged up this week, they remain near 2014 lows. Looking at full year data, the 30-year fixed-rate average for 2014 was 4.17 percent, the highest annual average since 2011. Also, the Conference Board reported that confidence among consumers rose in December and the S&P/Case-Shiller Seasonally-Adjusted National house price index rose 4.6 percent over the 12-months ending in October 2014."

Freddie Mac PMMS Facts:

• 30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.6 point for the week ending December 31, 2014, up from last week when it averaged 3.83 percent. A year ago at this time, the 30-year FRM averaged 4.53 percent.

• 15-year FRM this week averaged 3.15 percent with an average 0.6 point, up from last week when it averaged 3.10 percent. A year ago at this time, the 15-year FRM averaged 3.55 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.01 percent this week with an average 0.5 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.05 percent.

• 1-year Treasury-indexed ARM averaged 2.40 percent this week with an average 0.4 point, up from last week when it averaged 2.39 percent. At this time last year, the 1-year ARM averaged 2.56 percent.