Mortgage rates continued to edge downward during the week ended Dec. 20, with the average rate for a 30-year dropping to 4.62%, down from 4.63%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time the average rate for a 30-year was 3.94%.
“The response to the recent decline in mortgage rates is already being felt in the housing market,” says Sam Khater, chief economist for Freddie Mac, in a statement. “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,” Khater adds.
The average rate for a 15-year FRM was 4.07%, flat compared with the previous week. A year ago at this time, the average rate for a 15-year was 3.38%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.98% down from 4.04%. A year ago at this time, the five-year ARM averaged 3.39%.
