Mortgage Rates Ease Lower

Mortgage rates drifted downward for the third consecutive week according to the results of Freddie Mac's Primary Mortgage Market Survey for the week ended November 20.  All of the rates tracked by the survey are now below the averages of one year ago.

The 30-year fixed-rate mortgage (FRM) averaged 6.04 for the week as compared to 6.14 percent for the week ended November 13.  Fees and points averaged 0.7 for each of the weeks.  Last year at this time the 30-year averaged 6.20 percent.

The 15-year FRM averaged 5.73 percent for the week with 0.7 point.  The week before it had averaged 5.81 percent, also with 0.7 point and the same week in 2007 the average was 5.83 percent.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.87 percent, down from 5.98 percent a week earlier. Fees and points were unchanged at 0.6.   Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.87 percent this week, with an average 0.6 point, down from last week when the average was 5.98 percent.  A year ago, the 5-year ARM averaged 5.88 percent.  

One-year Treasury-indexed ARMs fell four basis points to an average of 5.29 percent this week with 0.5 point; last week the contract rate averaged 5.33 percent also with 0.5 point.  At this time last year, the 1-year ARM averaged 5.42 percent.  

 Long- and short-term mortgage rates fell for the third consecutive week amid continuing signs of a slowing economy, according to Frank Nothaft, Freddie Mac vice president and chief economist.  Retail sales fell for the fourth straight month in October and consumer sentiment remained near a 28-year low in November.  

In fact, the Federal Reserve during its October 28-29 committee meeting lowered its economic growth forecasts for 2008 and 2009, according to its minutes released this week.