Mortgage rate movement was mostly on the downside in Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).
The 30-year fixed-rate mortgage (FRM) averaged 4.62 percent for the week ending Dec. 20, down from last week when it averaged 4.63 percent. The 15-year FRM this week averaged 4.07 percent, unchanged from last week. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.98 percent, down from last week when it averaged 4.04 percent.
“The response to the recent decline in mortgage rates is already being felt in the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes—and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”