Mortgage rates moderate

The slight movements follow a significant drop

Mortgage rates moderate

Mortgage rates moderated during the week ending Dec. 20 after seeing a significant drop in the previous period, according to the Primary Mortgage Market Survey released by Freddie Mac.

“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. 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,” Freddie Mac Chief Economist Sam Khater said.

Rates for the 30-year fixed-rate mortgage averaged 4.62% with an average 0.4 point, down from 4.63%. The mortgage averaged 3.94% in the same period in 2017.

The 15-year fixed-rate mortgage averaged 4.07% with an average 0.4 point, unchanged from the previous period. A year ago at this time, the mortgage averaged 3.38%.

The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell to 3.98% with an average 0.3 point from 4.04%. The 5-year ARM averaged 3.39% in the year-ago period.