Mortgage rates started the new year by dropping across the board, with the average rate for a 30-year fixed-rate mortgage falling to 4.51%, down from 4.55% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year fixed-rate mortgage averaged 3.95%.
The average rate for a 15-year fixed-rate mortgage was 3.99%, down from 4.01%. A year ago at this time, the 15-year FRM averaged 3.38%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.98%, down from 4.00%. A year ago at this time, the five-year ARM averaged 3.45%.
“Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy,” says Sam Khater, chief economist for Freddie Mac, in a release. “However, it will be interesting to see how the recent turmoil in the stock market will affect home buying activity in the coming months.”