Mortgage rates drop on weak economic data

Rates on 30-year fixed-rate mortgages averaged 4.22 percent with an average point of 0.7 for the week ending Nov. 21, down from 4.35 percent last week but up from 3.31 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.

Rates on 15-year fixed-rate mortgages and five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans also decreased, while rates on one-year Treasury-indexed ARMs stayed flat.

“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, in a statement. “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.”

“On an annual basis, consumer prices are up 1 percent, the smallest increase since October 2009.”

Source: Freddie Mac