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Mortgage rates yawn second week of 2014

This has been an active week in mortgage news
This has been an active week in mortgage news
Spencer Platt / Getty Images

In the second reporting week of 2014, mortgage rates slid down slightly but basically remained in the 4.500% range. The reporting reflects the benchmark 30 Year Fixed Rate mortgage as reflected by the weekly survey from Freddie Mac. Each week the secondary giant polls it large cadre of lenders to compile data representing the survey.

Trader ponders which direction rates will go
Trader ponders which direction rates will go
Spencer Platt / Getty Images

The rate is down 2 basis points from the previous week of 4.513%. Interestingly the popular 15 year mortgage went up 1 basis points to 3.560%.

While the rates are flat, week over week they are nearly 1.125% higher than the same time last year. The trend is a reflection of higher consumer confidence, a stronger economy and stronger employment data.

Yellen and Watt

In addition to interest rate movement there are several other newsworthy items which occurred this week. Janet Yellen replaced Ben Bernanke and was confirmed to chair the Federal Reserve. Mel Watt who received confirmation last week to head up the Federal Housing Finance Authority was sworn in Monday by Vice-President Joe Biden and replaces outgoing Director Edward DeMarco.

Rate movement is based on market conditions. On the other hand, the Obama administration is looking forward to Yellen and Watt to focus public policy on creating a better environment for homeowners.

A 5 year look back compares mortgage rates posted on the 2nd reporting week of January.

YEAR RATE
2010 - 5.030%
2011 - 4.760%
2012 - 3.890%
2013 - 3.400%
2014 - 4.510%