Mortgage rates slide on weak economic data

WASHINGTON, Nov. 21 (UPI) -- The Federal Home Loan Mortgage Corp. said long-term lending rates fell in the week ending Thursday due to weak economic data.

"Fixed mortgage rates fell this week on reports of weaker manufacturing growth and declines in overall inflation rates," said Freddie Mac Vice President and Chief Economist Frank Nothaft.

"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," Nothaft said.

In the week, rates for 30-year fixed-rate mortgages fell from 4.35 percent to 4.22 percent with 0.7 point in the past week.

A year ago, rates for 30-year, fixed-rate mortgages averaged 3.31 percent.

Rates for 15-year fixed-rate mortgages dropped from 3.35 percent to 3.27 percent with an average 0.7 point in the week. A year ago in the same week, 15-year fixed-rate loans averaged 2.63 percent.

Rates for 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.95 percent this week with an average 0.5 point. Rates a week ago averaged 3.01 percent. A year ago, they averaged 2.74 percent.

Rates for 1-year Treasury-indexed adjustable-rate loans averaged 2.61 percent in the week, unchanged from the previous week. One-year loans averaged 0.4 point.

Last year over the same period, rates for 1-year adjustable-rate loans averaged 2.56 percent.

One point is equal to 1 percent of the amount of the loan and is typically paid up front. It includes a corresponding discount on the loan's long-term interest rates.