Interest rates on the 30-year fixed-rate mortgage (FRM) drifted back under 6 percent last week according to the results of Freddie Mac's Primary Mortgage Market Survey released Wednesday morning, a day ahead of the usual schedule due to the Thanksgiving Holiday.
The 30-year had an average contract rate of 5.97 percent with 0.7 point for the week that ended November 26 compared to an average of 6.04 also with 0.7 the week before.
The last time the 30-year FRM reached this level was the week ended October 9 when it was 5.94 percent.
The 15-year FRM averaged 5.74 percent, up one basis point from the week before. Fees and points were unchanged at 0.7.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) declined one basis point to 5.85 percent. Average fees and points both weeks were 0.6.
One-year Treasury-indexed hybrid ARMs had the largest drop, going from 5.29 percent with 0.5 point during the week ended November 20 to 5.18 percent with 0.5 point.
"Interest rates for 30-year fixed-rate mortgages fell for the fourth consecutive week as signs the overall economy is flagging lowered most interest rates market-wide," said Frank Nothaft, Freddie Mac vice president and chief economist. "And economic growth in the third quarter was revised downward this week, led by the first decline in consumer spending since the fourth quarter of 1991 and the largest drop since the second quarter of 1980.
"However, declining house prices and low mortgage rates have raised housing affordability in September to the highest level since February of this year, according to the National Association of Realtors® (NAR)."