Overseas Problems Continue to Drive Rates Down: Freddie Mac

Interest rates on fixed-rate mortgages fell further this week due to overseas turmoil, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.92% for the week ending Jan. 14, according to Freddie Mac's weekly Primary Mortgage Market Survey. That's five basis points lower than last week's average of 3.97%. On a year-over-year comparison, the rate is up from 3.66%.

The 15-year fixed-rate mortgage fell seven basis points from last week to an average of 3.19%. It was 2.98% a year ago.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.01%, down from 3.09% last week, and 2.9% a year ago.

At least some of the market volatility is due to investors looking for lower-risk assets, said Sean Becketti, Freddie Mac's chief economist, in a Thursday news release.

"Long-term Treasury yields continue to drop, dragging mortgage rates down with them," he said. "Turbulence in overseas financial markets is generating a flight-to-quality which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations."