November 25th, 2013
According to the latest Primary Mortgage Market Survey from government-sponsored mortgage entity Freddie Mac, rates on fixed mortgage loans fell during the week ending Nov. 21.
The average interest rate on a 30-year fixed-rate mortgage was 4.22 percent, down from 4.35 percent the week prior and up from 3.31 percent a year earlier. Additionally, 15-year FRMs averaged 3.27 percent, down from 3.35 percent on a week-over-week comparison and up from 2.63 percent a year prior.
While mortgage rates are still not as low as they were during the same time last year, the declines during the week ending Nov. 21 mean housing affordability remains within reach for aspiring homeowners. Rates are still very affordable compared to historical averages.
Analysts attribute the drops in rates to recent weak economic data. According to Freddie Mac, manufacturing growth has been slow and overall inflation rates are down.
“Fixed mortgage rates fell this week on reports of weaker manufacturing growth and declines in overall inflation rates,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Industrial production slipped by 0.1 percent in October, below the market consensus forecast of a 0.2 percent gain. The consumer price index also unexpectedly fell during the month.”