Bankrate: Retail sales data help sink mortgage rates

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates, which surged a week ago, retreated slightly this week, according to separate surveys released Thursday by Freddie Mac and Bankrate, which cited disappointing data on retail sales as contributing to the decline.

Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed rate mortgage at 5.00 percent with 0.7 point, down from 5.05 percent a week ago.

Bankrate’s national mortgage survey found the 30-year at 5.16 percent with 0.42 percent, down from 5.23 percent a week ago.

Said Bankrate: Retail sales that came in below expectations contributed to this week's retreat in mortgage rates. Although the tone of economic data is certainly stronger in recent months, any less-than-stellar reports or comments by Fed Chairman Ben Bernanke make it clear that the Fed has no intention of raising interest rates any time soon. The reality of low rates and sluggish job growth sustain demand for government bonds, to which mortgage rates are closely related.  

Rates have risen nearly a point since bottoming out in November. Freddie Mac’s Chief Economist Frank Nothaft said that despite the rise, rates remain low by historical standards.

Freddie Mac found the 15-year fixed rate mortgage dropping to 4.27 percent with 0.7 point, down from 4.29 percent a week ago.

Bankrate found the 15-year averaging 4.43 percent with 0.36 point, down from 4.48 percent.