Rates drop to 9-month low

Applications jumped more than 20% in response

Rates drop to 9-month low

Mortgage rates dropped significantly across the board during the week ending Jan. 10, according to the results of the Primary Mortgage Market Survey released by Freddie Mac.

Rates for the 30-year fixed-rate mortgage averaged 4.45% with an average 0.5 point, down from 4.51%. The mortgage averaged 3.99% in the same period last year.

The 15-year fixed-rate mortgage averaged 3.89% with an average 0.4 point, down from 3.99%. A year ago at this time, the mortgage averaged 3.44%.

The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell to 3.83% with an average 0.3 point from 3.98%. The 5-year ARM averaged 3.46% in the same week in 2018.

“Mortgage rates fell to the lowest level in nine months, and in response, mortgage applications jumped more than 20%,” Freddie Mac Chief Economist Sam Khater said. “Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales.”