Following nine consecutive weeks of increases, mortgage rates began 2017 by dipping down, with the average rate for a 30-year, fixed-rate mortgage (FRM) falling to 4.20%, down from 4.32% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.97%.
For the week ended Jan. 5, the average rate for a 15-year FRM was 3.44%, down from 3.55% the previous week. A year ago at this time, the 15-year FRM averaged 3.26%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 3.33%, up from 3.30%. A year ago, the five-year ARM averaged 3.09%.
“The 30-year mortgage rate fell this week for the first time since the presidential election, dropping 12 basis points to 4.20 percent,” says Sean Becketti, chief economist for Freddie Mac, in a release. “This marks the first time since 2014 that mortgage rates opened the year above four percent. Despite this week’s breather, the 66-basis-point increase in the mortgage rate since Nov. 3 is taking its toll – the [Mortgage Bankers Association’s] refinance index plunged 22 percent this week.”