Weak retail sales weigh on mortgages rates

NEW YORK (CNNMoney.com) -- Weak retail sales and broader concerns about the economy exerted downward pressure on mortgage rates, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.69 percent for the week ending Jan. 17, down from 5.87 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.23 percent.

Shoppers scaled back spending in December, with building materials, garden equipment and supply store sales down 2.9 percent from the previous month, noted Frank Nothaft, Freddie Mac (FRE, Fortune 500) vice president and chief economist in a statement.

"The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates," Nothaft said, adding that mortgage rates were lower for the third consecutive week.

Freddie Mac said 15-year fixed-rate loans averaged 5.21 percent, down from 5.43 percent last week. A year ago, the 15-year rate averaged 5.98 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 5.40 percent this week, down from 5.63 percent last week. A year ago, the 5-year rate averaged 6.04 percent.

One-year Treasury-indexed ARMs averaged 5.26 percent, down from 5.37 percent last week. At this time last year, the 1-year ARM averaged 5.51 percent.