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U.S. Mortgage Rates Drop

U.S. Mortgage Rates Drop

Residential News » North America Residential News Edition | By WPJ Staff | November 21, 2013 10:54 AM ET



Mortgage rates in the U.S. dropped this week, after two weeks of increases, amid weaker economic data, according to Freddie Mac.

The average 30-year fixed-rate mortgage was 4.22 percent for the week ending November 21, down from 4.35 percent last week. Last year at this time the average was 3.31 percent.

"Fixed mortgage rates fell this week on reports of weaker manufacturing growth and declines in overall inflation rates," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the report. "Industrial production slipped by 0.1 percent in October, below the market consensus forecast of a 0.2 percent gain. On an annual basis, consumer prices are up 1 percent, the smallest increase since October 2009."

The 15-year fixed-rate mortgage averaged 3.27 percent, down from 3.35 percent last week. A year ago it was 2.63 percent. 

The one-year treasury-indexed ARM averaged 2.61 percent this week, unchanged from last week.

In a separate report, Freddie Mac said next year will mark the end of the refinance boom and the first purchase-dominated market in 14 years for the U.S.

Yesterday, the Mortgage Bankers Associations reported a 2.3 percent decrease in mortgage applications for the week ending November 15. The refinance index dropped seven percent from the previous week, while the purchase index fell eight percent from the previous week and was three percent lower than the same week last year. 


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