Downward Trend Continues for Fixed Rates

Fixed mortgage rates continued to spiral down this week amid weak economic reports.

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According to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent (0.7 point) for the week ending April 18, down from last week, when it averaged 3.43 percent. Last year at this time, the 30-year fixed averaged 3.90 percent.

The 15-year FRM this week averaged 2.64 percent (0.7 point), slightly down from last week's average of 2.65 percent.

On the adjustable-rate mortgage (ARM) side, results were mixed.

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The 5-year hybrid ARM averaged 2.60 percent (0.5 point) this week, down from 2.62 percent, while the 1-year ARM averaged 2.63 percent (0.4 point), up from 2.62 percent.

""Mortgage rates nudged lower this week as consumer spending showed signs of weakness,"" observed Frank Nothaft, VP and chief economist for Freddie Mac. ""Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains.""

Meanwhile, ""Bankrate.com's"":http://www.bankrate.com/ weekly survey showed yet another three-month low for fixed rates. According to the site, the benchmark 30-year FRM average retreated to 3.61 percent from 3.64 percent previously. The 15-year fixed average, meanwhile, fell to 2.85 percent from 2.89 percent.

The 5/1 ARM average slipped to 2.66 percent, a drop from 2.70 percent.

""The upbeat economic data in the first quarter has given way to more tepid readings of late, raising the possibility of yet another Spring slowdown,"" Bankrate said in a release. ""Concerns about just such a slowdown will likely keep mortgage rates in check.""

By Bankrate's measures, this week marks the fifth straight week in which average rates have fallen.