After weeks of moderating, mortgage rates decreased this week, with the average rate for a 30-year fixed-rate mortgage falling to 4.75%, down from 4.81%, 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 six percentage point drop coincides with a steep sell-off in U.S. stocks.
“This week’s rate reaction to the volatile stock market is a welcome relief to prospective homebuyers who have recently experienced rising rates and rising home prices,” says Sam Khater, chief economist for Freddie Mac, in a statement.
December, however, is typically a slow month for home sales – so, the drop in mortgage rates might not be enough to get more home buyers off the sidelines.
Furthermore, there remains a serious inventory problem from which there is no relief in sight
For the week ended Dec. 6, the average rate for a 15-year fixed-rate mortgage was 4.21% – down from 4.25%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.36%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.07%, down from 4.12%. A year ago at this time, the average rate for a five-year ARM was 3.36%.
