Since the Federal Reserve announced its pull-back on the bond-buying stimulus program by $10 million per month, beginning January this year, mortgage rates have been set to increase. The 30-year fixed average hit 4.51% the first week of January. This past week it dropped to 4.42% in align with reports of a weakening economic recovery, accordingn to the latest Freddie Mac survey.
After marginal gain last week, 15-year fixed-rate mortgages also fell. It decreased from last week\'s 3.56% to 3.45%.
According to Frank Nothaft, VP and chief economist for Freddie Mac, the decreases are due to weak economic data. Jobs added in December did not match the market consensus forecast, resulting in the addition of only 74,000 jobs. Retail sales for December increased only half of that of November.
The latest Mortgage Rate Trend Index shows loan experts being split on whether rates will rise or remain unchanged.
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