After reaching a three-month low last week, mortgage rates cooled off further, according to the latest Freddie Mac Primary Mortgage Market Survey.

According to the survey, the 30-year fixed-rate mortgage inched backwards from 4.63% last week, averaging 4.62% for the week ending Dec. 20, 2018. This is still a significant increase from last year’s rate of 3.94%.

Freddie Mac Chief Economist Sam Khater said the response to the recent decline in mortgage rates is already being felt in the housing market.

“After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months,” Khater continued. “This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes – and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”

(click to enlarge)

Freddie Mac, Dec 20

The 15-year FRM averaged 4.07% this week, holding steady from last week’s average. This time last year, the 15-year FRM was 3.38%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.98%, retreating from 4.04% the week before. However, the rate is still higher than this time last year when it averaged 3.39%.

Most Popular Articles

NAR bans “pocket listings”

The National Association of Realtors board of directors voted 729-70 on Monday to ban the controversial practice of “pocket listings.”

Nov 12, 2019 By

Latest Articles

Uh-oh: Borrowers’ satisfaction with their lender is falling as originations rise

By all accounts, 2019 is going to end up being the best year for the mortgage business in at least three years, but is there appears to be a serious fly in the mortgage business’ ointment. A new survey shows that borrowers’ satisfaction with their lender dropped significantly in the second quarter as lenders struggled to deal with the surge in mortgage demand caused by falling interest rates.

Nov 14, 2019 By