Mortgage rates fall on weak economic news

Published November 21, 2013 by Jessica Sabbath

Mortgage rates fell this week on reports of weak manufacturing growth and declines in the consumer price index and inflation, according to McLean-based Freddie Mac.

The average 30-year, fixed-rate mortgage was 4.22 percent with an average 0.7 point, down from last week when it averaged 4.35 percent. A year ago, the average 30-year rate was 3.31 percent.

The average 15-year, fixed-rate mortgage fell to 3.27 percent this week from 3.35 percent last week. The average 15-year, fixed-rate mortgage was 2.63 percent at this time last year.

“Industrial production slipped by 0.1 percent in October, below the market consensus forecast of a 0.2 percent gain,” Freddie Mac Chief Economist Frank Nothaft said in a statement. “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.”