Mortgage Rates Drop to Lowest Level in Three Months
Freddie Mac released the results of its Primary Mortgage Market Survey®, showing that mortgage rates dropped significantly after several weeks of moderating.
“The 30-year fixed fell to 4.63 percent this week – the lowest it has been since mid-September,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates. While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”
According to Freddie Mac, 30-year fixed-rate mortgage (FRM) averaged 4.63 percent with an average 0.5 point for the week ending December 13, down from the previous week when it averaged 4.75 percent. A year ago at this time, the 30-year FRM averaged 3.93 percent.
A 15-year fixed rate mortgage this week averaged 4.07 percent with an average 0.5 point, down from last week when it averaged 4.21 percent. A year ago at this time, the 15-year FRM averaged 3.36 percent.
A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.04 percent with an average 0.3 point, down from last week when it averaged 4.07. A year ago at this time, the 5-year ARM averaged 3.36 percent. Closing costs are not included in the survey.
Freddie Mac was created by Congress in 1970 to make housing more accessible and affordable for homebuyers and renters in communities nationwide. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.