Mortgage Rates Decline
Tuesday, December 18, 2018
Freddie Mac reported last week that mortgage rates dropped after several weeks of moderating. Yet, rates remain significantly higher than the same period a year ago. Sam Khater, Freddie Mac’s chief economist, stated that the 30-year fixed fell to 4.63 percent last week – the lowest it has been since mid-September. Khater said, “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.”
- 30-year fixed rate mortgages (FRM) averaged 4.63 percent with an average 0.5 point for the week ending December 13, 2018, down from the prior week when it averaged 4.75. A year ago, at this time, the 30-year FRM averaged 3.93 percent.
- 15-year FRMs averaged 4.07 percent with an average 0.5 point, down from the prior week when it averaged 4.21 percent. A year ago, at this time, the 15-year FRM averaged 3.36 percent.
- 5-year Treasury-indexed hybrid adjustable rate mortgages (ARM) averaged 4.04 percent with an average 0.3 point, drop from the prior week when it averaged 4.07. A year ago, at this time, the 5-year ARM averaged 3.36 percent.