Mortgage rates dropped significantly during the week ending Dec. 13 to its lowest level since mid-September following several weeks of moderating, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage averaged 4.63%, with an average 0.5 point, down from their previous 4.75% average. The mortgage averaged 3.93% during the same week in 2017.
The 15-year fixed-rate mortgage averaged 4.07%, with an average 0.5 point, down from 4.21%. A year ago at this time, the mortgage averaged 3.36%.
The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell to 4.04%, with an average 0.3 point, from 4.07% in the previous period. The 5-year ARM averaged 3.36% in the same period last year.
“The 30-year fixed fell to 4.63% this week – the lowest it has been since mid-September,” Freddie Mac Chief Economist Sam Khater said. “Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates. While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”