Borrowing costs moved lower this week as the 30-year fixed-rate mortgage averaged 3.6%, Freddie Mac reports. Rates are at the lowest levels in three months and about a quarter-point above all-time lows. “The very low rate environment has clearly had an impact on the housing market, as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy, and improving financial market sentiment,” says Freddie Mac Chief Economist Sam Khater.
Freddie Mac reported the following national averages for the week ending Jan. 23:
- 30-year fixed-rate mortgages: averaged 3.6%, with an average 0.8 point, falling from last week’s 3.65% average. Last year at this time, they averaged 4.45%.
- 15-year fixed-rate mortgages: averaged 3.04%, with an average 0.8 point, dropping from last week’s 3.09% average. A year ago, they averaged 3.88%.