Mortgage rates continue to defy forecasts, as the 30-year fixed-rate mortgage falls even lower this week. This marks the second consecutive week where 30-year fixed-rate mortgages declined.
“Long-term Treasury yields continue to drop, dragging mortgage rates down with them,” says Sean Becketti, Freddie Mac’s chief economist. “Turbulence in overseas financial markets is generating a flight-to-quality which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations. The net effect on the 30-year mortgage rate was a 5 basis point drop to 3.92 percent.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 14:
- 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.6 point, dropping from last week’s 3.97 percent average. Last year at this time, 30-year rates averaged 3.66 percent.
- 15-year fixed-rate mortgages: averaged 3.19 percent, with an average 0.5 point, falling from 3.26 percent the prior week. A year ago, 15-year rates averaged 2.98 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.01 percent, with an average 0.4 point, falling from 3.09 percent last week. Last year at this time, 5-year ARMs averaged 2.90 percent.
Source: Freddie Mac