Mortgage rates fall for second week in a row


(Jonathan Alcorn/Bloomberg)

Mortgage rates fell for the second week in a row, according to the latest data released Thursday by Freddie Mac.

The 30-year fixed-rate average sank to 4.39 percent with an average 0.7 point, its lowest level since late November. It was 4.41 percent a week ago and 3.53 percent a year ago.

The 15-year fixed-rate average edged down to 3.45 percent with an average 0.7 point. It was 3.45 percent a week ago and 2.81 percent a week ago. The 15-year fixed rate was below 3.5 percent for only the second time in the past six weeks.

Hybrid adjustable rate mortgages were mixed. The five-year ARM average rose to 3.15 percent with an average 0.5 point. It was 3.1 percent a week ago and 2.7 percent a year ago.

The one-year ARM average moved for the first time in four weeks, dropping to 2.54 percent with an average 0.5 point.

“Mortgage rates were flat to down a little this week amid reports that inflation remains subdued,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. “The Consumer Price Index was up to 0.3 percent in December after being unchanged in November. For the year as a whole, consumer prices rose just 1.5 percent in 2013.”

Meanwhile, spurred by falling interest rates, mortgage applications showed an uptick last week, according to the latest data from the Mortgage Bankers Association.

The Market Composite Index, a measure of total loan application volume, rose 4.7 percent. The Refinance index grew 10 percent, while the Purchase Index increased 2 percent.

The refinance share of mortgage activity rose to its highest level in two months, accounting for 64 percent of all applications.

Kathy Orton is a reporter and Web editor for the Real Estate section. She covers the Washington metropolitan area housing market.
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