Mortgage Rates Fall to 4.99%

NEW YORK—Mortgage rates fell this week, with the third consecutive decline pushing the average for 30-year fixed-rate loans back below 5%, according to Freddie Mac's weekly survey.

Treasury yields have declined recently, and mortgage rates tend to follow the yields.

The 30-year fixed-rate mortgage averaged 4.99% for the week ended Thursday, down from last week's 5.06% average and 5.12% a year ago. Rates for 15-year fixed-rate mortgages were 4.4%, down from 4.45% and 4.8%, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.27%, down from last week's 4.32% and 5.24% a year earlier. One-year mortgages stood at 4.32%, down from 4.39% last week and 4.92% a year ago.

Frank Nothaft, Freddie Mac vice president and chief economist, said in a news release: "ARM rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserve's target rate following its upcoming committee meeting on January 26 and 27."

According to a separate survey released by the Mortgage Bankers Association on Wednesday, the volume of mortgage applications rose a seasonally adjusted 9.1% last week, compared with the week before.