Fears of mortgage rates rising too quickly might have been premature, as the latest Freddie Mac data
points to a rate drop.
The 30-year fixed-rate mortgage (FRM) averaged 4.63 percent for the week ending Dec. 13, down from last week when it averaged 4.75. The 15-year FRM this week averaged 4.07 percent, down from last week when it averaged 4.21 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.04 percent, down from last week when it averaged 4.07.
“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.”