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U.S. fixed mortgage rates fall on bad GDP data

Staff writer |
U.S. fixed mortgage rates fell for the second consecutive week, lower than the same period of last year, affected by the serious contraction in the first quarter GDP, said the Primary Mortgage Market Survey released by Freddie Mac.

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The U.S. mortgage giant said the 30-year fixed-rate mortgage (FRM) decreased from 4.17 percent in the previous week to 4.14 percent in the week ending Thursday, lower than the 4.46 percent of the same period last year.

The 15-year FRM, a popular guide for those looking to refinance, edged down to 3.22 percent this week from 3.30 percent in the prior week.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell from 3 percent last week to 2.98 percent this week, while the one-year Treasury-indexed ARM slid to 2.40 percent from 2.41 percent last week.

The U.S. housing market has showed signs of slowdown since the second half of last year, as sharp increases in home prices and limited inventories, as well as higher mortgage rates have discouraged many home buyers.

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