30-Year Fixed-Rate Mortgages Dip; 5/1 ARMs Rise
Freddie Mac released its weekly update on national mortgage rates on Thursday morning, showing a mixed bag that included a slight drop in the average rate for 30-year fixed-rate mortgages and a spike in the rate for 5/1 adjustable-rate mortgages.
Fixed-rate mortgages (FRMs) moved in opposing directions over the past week, with 30-year FRMs dropping two basis points to land at 4.51%, while 15-year FRMs added a single b.p. to reach 3.56%.
A year ago, 30-year FRMs were averaging 3.40% and 15-year FRMs averaged 2.66%.
Among adjustable-rate mortgages (ARMs), 5/1 ARMs spiked sharply over the past week -- up 10 basis points to 3.15%. In contrast, shorter one-year ARMs held steady at 2.56% for the third week in a row.
A year ago, 5-year ARMs averaged 2.67% while one-year ARMs averaged 2.60%.
Commenting in a statement, Frank Nothaft, Freddie Mac's vice president and chief economist, said rates were "little changed amid a week of light economic reports."
There was one private-sector jobs report -- from ADP -- which showed 238,000 jobs added in December, and this was a better number than had been expected. Counteracting this positive news was a report from the Institute for Supply Management that suggested growth in America's non-manufacturing industry is slowing down.
The article 30-Year Fixed-Rate Mortgages Dip; 5/1 ARMs Rise originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Automatic Data Processing. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.