30-Year Mortgage Rate Eases to 4.37% as Market Fears Wane

30-Year Mortgage Rate Eases to 4.37% as Market Fears WaneAverage fixed mortgage rates eased down slightly this week as market fears of a winding down of the Federal Reserve’s bond purchases diminished and new data showed a slower economic recovery, Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 4.37 percent this week, down from last week when it averaged 4.51 percent.
A weakened recovery puts pressure on interest rates because such signs would keep the central bank from slowing its $85 billion monthly purchases for a longer period of time.
Consumer sentiment fell to a three month low in July, while retail sales in June grew by only 0.4 percent — half of the market consensus forecast. Moreover, housing starts fell in June to the slowest pace since August 2012.
Fixed mortgage rates fell as Fed Chairman Ben Bernanke has indicated in recent days that a “highly accommodative monetary policy is what’s needed in the U.S. economy,” according to Frank Nothaft, vice president and chief economist, Freddie Mac.
Here is Freddie Mac’s rundown on mortgage rates for the week:
30-year fixed-rate mortgage averaged 4.37 percent, with an average 0.7 point for the week ending July 18, 2013, down from last week when it averaged 4.51 percent. Last year at this time, the 30-year fixed rate averaged 3.53 percent.
15-year fixed rate averaged 3.41 percent, with an average 0.7 point, down from last week when it averaged 3.53 percent. A year ago at this time, the 15-year fixed rate averaged 2.83 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent this week, with an average 0.6 point, down from last week when it averaged 3.26 percent. A year ago, the 5-year ARM averaged 2.69 percent.
1-year Treasury-indexed ARM averaged 2.66 percent this week, with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.69 percent.

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