Average fixed mortgage rates in the U.S. fell to the lowest
levels since May 2013 in the latest week, according to
mortgage-finance company Freddie Mac (FMCC).
The decline came in a week when the yield on the benchmark
10-year note fell below 2% for the first time in three months.
Freddie Mac Chief Economist Frank Nothaft stated Thursday that
minutes from the Federal Reserve's most recent meeting "indicated
ongoing discussion regarding the timing of the first rate hike."
Meanwhile, a private national employment report compiled by payroll
processor Automatic Data Processing Inc. (ADP) and forecasting firm
Moody's Analytics also indicated that businesses hired more workers
that expected during December, Mr. Nothaft also noted.
For the week ended Thursday, the 30-year fixed-rate mortgage
averaged 3.73%, the lowest level since May 2013, when the rate
averaged 3.59%. The 30-year fixed rate was 3.87% a week earlier and
4.51% a year earlier.
Rates on 15-year fixed-rate mortgages averaged 3.05%, compared
with 3.15% the previous week and 3.56% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages, or
ARMs, on average, was at 2.98%, compared with 3.01% the previous
week and 3.15% a year earlier. One-year Treasury-indexed ARM rates
on average were 2.39%, compared with 2.4% the previous week and
2.56% a year earlier.
Write to Tess Stynes at tess.stynes@wsj.com
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