Mortgage rates fall with latest economic reports

Mortgage rates fell for the second consecutive week, according to Freddie Mac‘s weekly mortgage survey. Last week, mortgage rates began to drop after four consecutive weeks of inching higher. The 30-year, fixed-rate stands at 4.78% with an average 0.7 point for the week ending April 28, down from 4.8%. Last year, the 30-year FRM averaged 5.06 percent. The 15-year fixed was 3.97% with a 0.7 point, the lowest since Dec. 9, 2010. A year ago, it averaged 4.39%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.51%, with an average 0.6 point, down from 3.61% last week and 4% a year ago. The 1-year Treasury-indexed ARM averaged 3.15% with an average 0.6 point, down 3.16% last year and 4.25% in the year-ago period. “Mortgage rates followed Treasury bond yields lower this week amid weak local economic data reports on business conditions and house prices,” said Frank Nothaft, vice president and chief economist, Freddie Mac. Federal Reserve Banks reported a decline in business and manufacturing activities in Philadelphia, Dallas and Richmond in April. In addition, the S&P/Case-Shiller 20-city composite home price index recorded year-over-year declines in 19 of the 20 markets. “Declining home prices and a high level of foreclosures continue to affect housing tenure decisions,” Nofhaft said. Bankrate reported the 30-year, fixed-rate mortgage fell 1 basis point to 4.95% in its national survey of large mortgage lenders. It stood at 5.21% a year ago. The 15-year, fixed-rate mortgage fell 2 basis points to 4.14%, according to Bankrate. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.