Mortgage Rate News & Analysis
Long-term interest rates moved back down into record low territory in January as mixed economic data continued to push down bond rates, according to data from mortgage finance company Freddie Mac.
January 5
During the first week of the new year, the average rate on a 30-year fixed rate mortgage (FRM) fell to 3.91 percent, excluding points, from 3.95 percent the week before. The average on a 15-year FRM slipped to 3.23 percent from 3.24 percent, and the one-year adjustable rate mortgage (ARM) carried an average rate of 2.80 percent, up from 2.76 percent the previous week.January 12
The next weeks, rates again dipped to a new all-time record low, with the 30-year FRM averaging 3.89 percent, the 15-year FRM sinking to 3.16 percent and the one-year ARM falling to 2.76 percent."Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market," said Freddie Mac vice president and chief economist Frank Nothaft. "Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated."
January 19
During the third week, rates fell even lower. The average rate on a 30-year FRM inched down to 3.88 percent, but the 15-year FRM moved up slightly to 3.17 percent. The one-year ARM also fell, to 2.74 percent.Nothaft commented, "Mortgage rates were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports. "
January 26
The month ended with a jump up in rates, although still under an historically low 4 percent. The 30-year FRM reached back up to 3.98 percent, the 15-year FRM climbed to 3.24 percent, and the one-year ARM was unchanged at 2.74 percent.What's Next for Interest Rates?
While the economy slowly makes its way up the recovery hill, there is little in February predicted to make waves in mortgage interest rates. Rates will likely hover right around 4 percent for the month and slowly average above 4 percent in the coming months.
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