Mortgage Rates Down on Weak GDP Report

Nearly a year after shooting up past 4 percent, the 30-year average fixed mortgage rate is now coming back down toward the same mark, reports show.

Freddie Mac's weekly Primary Mortgage Market Survey, released Thursday, shows the average rate for a 30-year fixed-rate mortgage (FRM) falling to 4.14 percent (0.5 point) for the week ending June 26, a continued slide from 4.17 percent last week.

A year ago, the 30-year fixed average was 4.46 percent, an increase of more than half a percentage point over the week prior.

The 15-year FRM came down to 3.22 percent (0.5 point), meanwhile, from 3.30 percent previously.

The declines follow Wednesday's report on gross domestic product in the first quarter, which surprised most analysts with news of a 2.9 percent contraction in the nation's economy.

Adjustable rates also slipped this week. According to Freddie Mac, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent (0.3 point) in the latest report, down from 3.00 percent in last week's survey. At the same time, the 1-year ARM averaged 2.40 percent (0.4 point), just down from 2.41 percent previously.

Mortgage interest rates were on the rise at this time last year on speculation that the Federal Reserve might soon start tapering its bond purchases. Contrary to what happened then, rates have remained relatively calm as the Fed continues to trim its stimulus.