Mortgage rates dropped across the board during the first full week of 2019, leading to a significant jump in mortgage applications.
During the week ended January 10, the average rate for a 30-year fixed rate mortgage was 4.45%, down from 4.51% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was around 3.99%.
The average rate for a 15-year fixed-rate mortgage was 3.89%, down from 3.99%. A year ago at this time, the average rate for a 15-year was 3.44%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.83%, down from 3.98%. A year ago at this time, the average rate for a five-year ARM was 3.46%.
“Mortgage rates fell to the lowest level in nine months, and in response, mortgage applications jumped more than 20 percent,” says Sam Khater, chief economist for Freddie Mac, in a release. “Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales.”
The drop in rates began in the second week of December. On Wednesday, the Mortgage Bankers Association reported that mortgage application volume fell 23% during the week ended Jan. 4, resulting from the decrease in rates.