Freddie Mac’s most recent Primary Mortgage Market Survey shows that treasury yields fell from a week ago, helping to drive mortgage rates down to begin the new year. “The 30-year mortgage rate is down a quarter of a percentage point from where it was a year ago, and the spread between the 30-year fixed and 5/1 adjustable rate mortgage is the lowest since 2009,” says Len Kiefer, Freddie Mac’s deputy chief economist. “With the FOMC minutes showing continued support for gradual increases in policy rates from many participants and inflation rates remaining low, there isn’t much upward pressure on long-term rates at the moment. Whether that changes due to a tighter labor market and the economic impact of tax reform remains to be seen.”
Here, a look at Freddie Mac’s survey findings for the week ending Jan. 4:
- The 30-year fixed-rate mortgage averaged 3.95 percent, with an average 0.5 point, down from the previous week when it averaged 3.99 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.20 percent.
- The 15-year fixed-rate mortgage averaged 3.38 percent, with an average 0.5 point, down from the previous week when it averaged 3.44 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.44 percent.
- The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.45 percent, with an average 0.4 point, down from the previous week when it averaged 3.47 percent. A year ago, the five-year adjustable-rate mortgage averaged 3.33 percent.