Freddie Mac: New Year Brings Lower Rates

January 4, 2019

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Sam Khater, Freddie Mac’s chief economist, says, “Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent.”

Freddie Mac yesterday released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing that the new year started with lower rates across the board.

Sam Khater, Freddie Mac’s chief economist, says, “Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy. However, it will be interesting to see how the recent turmoil in the stock market will affect homebuying activity in the coming months.”

News Facts

30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.5 point for the week ending January 3, 2019, down from last week when it averaged 4.55 percent. A year ago at this time, the 30-year FRM averaged 3.95 percent.
15-year FRM this week averaged 3.99 percent with an average 0.4 point, down from last week when it averaged 4.01 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.98 percent with an average 0.2 point, down from last week when it averaged 4.00 percent. A year ago at this time, the 5-year ARM averaged 3.45 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.