Mortgage Rates Tick Up

“With Federal Reserve policy on cruise control and the economy continuing to grow at a steady pace, mortgage rates have stabilized as the market searches for direction,” said Sam Khater, Freddie Mac’s Chief Economist. “The risk of an economic downturn has receded and, combined with the very strong job market, it should lead to a slightly higher rate environment.”

  • 30-year fixed-rate mortgage averaged 3.73 percent with an average 0.7 point for the week ending December 12, 2019, up from last week when it averaged 3.68 percent. A year ago at this time, the 30-year FRM averaged 4.63 percent.
  • 15-year fixed-rate mortgage averaged 3.19 percent with an average 0.7 point, up from last week when it averaged 3.14 percent. A year ago they averaged 4.07 %.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.36 percent with an average 0.4 point, down from last week when it averaged 3.39 percent. A year ago at this time, the 5-year ARM averaged 4.04 percent.

Source: Freddie Mac

Mortgage Rates Stay Steady

“This week the economy sent mixed signals, leaving mortgage rates unchanged,” says Sam Khater, Freddie Mac’s chief economist. “Survey data for manufacturing and service industries varied while construction spending fell modestly. However, homebuyer demand continued to improve, rising eight percent. Clearly, home buyers remain bullish on the real estate market.”

Freddie Mac reports the following national averages for the week ending Dec. 5:

  • 30-year fixed-rate mortgages: averaged 3.68%, with an average 0.5 point, holding the same as last week. Last week at this time, 30-year rates averaged 4.75%.
  • 15-year fixed-rate mortgages: averaged 3.14%, with an average 0.4 point, falling slightly from last week’s 3.15% average. A year ago, they averaged 4.21%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.39%, with an average 0.4 point, falling from last week’s 3.43% average. A year ago, they averaged 4.07%.
Source: Freddie Mac

Drop in Mortgage Rates = Higher Home Buying Demand

Mortgage rates declined this week, After several weeks of increases, the drop in mortgage rates is a welcome sign for home buyers.

The housing market continues to steadily gain momentum with rising homebuyer demand and increased construction due to the strong job market, ebullient market sentiment, and low mortgage rates,” says Sam Khater, Freddie Mac’s chief economist. “Residential real estate accounts for one-sixth of the economy, and the improving real estate market will support economic growth heading into next year.”

Freddie Mac reports the following national averages for the week ending Nov. 21:

  • 30-year fixed-rate mortgages: averaged 3.66%, with an average 0.6 point, falling from last week’s 3.75% average. Last year at this time, they averaged 4.81%.
  • 15-year fixed-rate mortgages: averaged 3.15%, with an average 0.5 point, falling from last week’s 3.20% average. A year ago, 15-year rates averaged 4.24%.
Source: Freddie Mac

Home Loan Interest Rates Rise

“The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, Freddie Mac’s chief economist. “Due to the improved economic outlook, purchase mortgage applications rose fifteen percent over the same week a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.”

Freddie Mac reports the following national averages for the week ending Nov. 14:

  • 30-year fixed-rate mortgages: averaged 3.75%, with an average 0.6 point, rising from last week’s 3.69% average. Last year at this time, they averaged 4.94%.
  • 15-year fixed-rate mortgages: averaged 3.2%, with an average 0.5 point, rising rom last week’s 3.13% average. A year ago, 15-year rates averaged 4.36%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.44%, with an average 0.4 point, rising from last week’s 3.39% average. A year ago, they averaged 4.14%.
Source: Freddie Mac

Mortgage Rates Reverse Course

Following three consecutive weeks of increases, the 30-year fixed-rate mortgage posted a drop this week. “The improvement in sentiment has been one of the main drivers behind the surge in equity prices and will provide a halo effect to consumer spending heading into the important holiday shopping season,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following nationwide averages for the week ending Nov. 7:

  • 30-year fixed-rate mortgages: averaged 3.69%, with an average 0.5 point, falling from last week’s 3.78% average. Last year at this time, they averaged 4.94%.
  • 15-year fixed-rate mortgages: averaged 3.13%, with an average 0.4 point, dropping from last week’s 3.19% average. A year ago, they averaged 4.33%.
Source: Freddie Mac

Mortgage Rates Rise This Week

For the third consecutive week, the interest rate for the 30-year fixed-rate mortgage increased. The rise came despite the Federal Reserve cutting its key benchmark rate for the third time this year.

“Purchase activity continues to show strength, indicating obvious homebuyer demand,” says Sam Khater, Freddie Mac’s chief economist. “However, the lack of housing supply remains a major barrier to not just the housing market but the overall economic recovery.”

Freddie Mac reports the following national rates for the week ending Oct. 31:

30-year fixed-rate mortgages: averaged 3.78%, with an average 0.5 point, rising from last week’s 3.75% average. Last year at this time, 30-year rates averaged 4.83%.

15-year fixed-rate mortgages: averaged 3.19%, with an average 0.6 point, rising from last week’s 3.18% average. A year ago, 15-year rates averaged 4.23%..

Source: Freddie Mac

Home Loan Rates Increased

The 30-year fixed-rate mortgage was on the rise last week, leaping to a 12-week high. But rates are still well below year-ago levels.

“The outlook for a favorable resolution to the trade dispute between the U.S. and China is still unclear, introducing some volatility into financial markets and the benchmark 10-year Treasury yield,” says Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are following suit but are near historic lows, while mortgage applications to purchase a home remain higher year over year.”

Freddie Mac reports the following national averages for the week ending Oct. 24:

  • 30-year fixed-rate mortgages: averaged 3.75%, with an average 0.5 point, rising from last week’s 3.69% average. Last year at this time, they averaged 4.86%.
  • 15-year fixed-rate mortgages: averaged 3.18%, with an average 0.5 point, rising from last week’s 3.15% average. A year ago, 15-year rates averaged 4.29%.
Source: Freddie Mac

Rates Increased, But Don’t Worry

No reason for home shoppers to get nervous: Economists largely predict mortgage rates will dip in the weeks ahead. Also, rates are still more than a percentage point lower than a year ago.

“Despite this week’s uptick in mortgage rates, the housing market remains on the upswing, with improvement in construction and home sales,” says Sam Khater, Freddie Mac’s chief economist. “While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging.”

Freddie Mac reports the following national averages for the week ending Oct. 17:

  • 30-year fixed-rate mortgages: averaged 3.69%, with an average 0.6 point, rising from last week’s 3.57% average. Last year at this time, 30-year rates averaged 4.85%.
  • 15-year fixed-rate mortgages: averaged 3.15%, with an average 0.5 point, rising from a 3.05% average last week. A year ago, they averaged 4.26%..
Source: Freddie Mac

Mortgage Rates ‘Are Dropping’

The 30-year fixed-mortgage fell 8 basis points this week, averaging 3.57%, Freddie Mac reports. The lower rates are drawing out more home buyers in the fall market.

“The 50-year low in the unemployment rate combined with low mortgage rates has led to increased home buyer demand this year. Much of this strength is coming from entry-level buyers—the first-time home buyer share of the loans Freddie Mac purchased in 2019 is 46%, a two-decade high,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending Oct. 10:

  • 30-year fixed-rate mortgages: averaged 3.57%, with an average 0.6 point, falling from last week’s 3.65% average. Last year the 30-year rates averaged 4.90%.
  • 15-year fixed-rate mortgages: averaged 3.05%, with an average 0.5 point, falling from last week’s 3.14% average. A year ago, 15-year rates averaged 4.29%.
Source: Freddie Mac

Home Loan Rates Hold Firm

Home buyers looking for a purchase loan and homeowners who want to refinance are responding well to low mortgage rates. “While mortgage rates generally held steady this week, overall mortgage demand remained very strong, rising over 50% from a year ago thanks to increases in both refinance and purchase mortgage applications,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending Oct. 3:

  • 30-year fixed-rate mortgages: averaged 3.65%, with an average 0.6 point, up slightly from last week’s 3.64% average. Last year, 30-year rates averaged 4.71%.
  • 15-year fixed-rate mortgages: averaged 3.14%, with an average 0.5 point, falling from last week’s 3.16% average. A year ago, 15-year rates averaged 4.15%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.38%, with an average 0.4 point, unchanged from last week’s average. A year ago, they averaged 4.01%.
Source: Freddie Mac