Mortgage Rates Decline to 4-Week low

Mortgage Rates Decline to 4-Week low
By RUTH MANTELL

Home-mortgage rates declined for a second straight week, according to data released Thursday by Freddie Mac, but the housing market continued to face headwinds from a supply glut and the struggling employment situation.

The average 30-year fixed-rate mortgage fell to 4.71% in the week ended Jan. 13, reaching a four-week low, Freddie Mac said. The rate was 4.77% in the prior week and 5.06% in the prior year, according to Freddie Mac, a buyer of residential mortgages.

To obtain the latest rate, the mortgage required payment of an average 0.8 point. A point is 1% of the mortgage amount, charged as prepaid interest.

The 15-year fixed-rate mortgage averaged 4.08% in the latest week, with an average 0.7 point, down from the prior week's 4.13% and the year-ago rate of 4.45%.

Low rates could help a still-troubled housing market, which has been hobbled by persistent employment weakness and a large supply of homes.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.72% in the latest week, with an average 0.7 point, down from 3.75% in the prior week and 4.32% last year. Also, one-year Treasury-indexed ARMs averaged 3.23% in the most recent week, with an average 0.6 point, down from 3.24% in the prior week and 4.39% a year ago.

Write to Ruth Mantell at ruth.mantell@dowjones.com