With underwhelming housing market data in recent days and weak demand for refinancing, the average 30-year fixed mortgage rate this week slipped to 3.89 percent, its lowest level of the year and the lowest since the week of May 30, 2013, Freddie Mac reported Thursday.
By comparison, the 30-year home loan stood at 4.46 percent one year ago.
Despite low interest rates across the board, the Mortgage Bankers Association reported Wednesday that applications for refinancing existing mortgages have fallen 16 percent from a year ago.
Weak economic and housing data helped push rates down this week, said Frank Nothaft, vice president and chief economist, Freddie Mac.
New home sales missed consensus expectations by selling at an annual pace of 458,000 units in October. Moreover, realtors said that pending home sales fell in October by 1.1 percent. On the job front, the ADP’s estimate for payroll growth in November was 208,000 jobs, under the projected 225,000.
Here is Freddie Mac’s overview of mortgage rates for the week:
30-year fixed-rate mortgage (FRM) averaged 3.89 percent, with an average 0.5 point for the week ending December 4, 2014, down from last week when it averaged 3.97 percent. A year ago at this time, the 30-year FRM averaged 4.46 percent.
15-year FRM this week averaged 3.10 percent, with an average 0.5 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 3.47 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.94 percent this week, with an average 0.5 point, down from last week when it averaged 3.01 percent. A year ago, the 5-year ARM averaged 2.99 percent.
1-year Treasury-indexed ARM averaged 2.41 percent this week, with an average 0.4 point, down from last from last week when it averaged 2.44 percent. At this time last year, the 1-year ARM averaged 2.59 percent.