Drop In Mortgage Rates Leads To Jump In Mortgage Applications

MCLEAN, Va. – Yesterday, Freddie Mac released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing rates dropped significantly across the board.

Sam Khater, Freddie Mac’s chief economist, says, “Mortgage rates fell to the lowest level in nine months, and in response, mortgage applications jumped more than 20 percent. 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.”

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 4.45 percent with an average 0.5 point for the week ending January 10, 2019, down from last week when it averaged 4.51 percent. A year ago at this time, the 30-year FRM averaged 3.99 percent. 
• 15-year FRM this week averaged 3.89 percent with an average 0.4 point, down from last week when it averaged 3.99 percent. A year ago at this time, the 15-year FRM averaged 3.44 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.83 percent with an average 0.3 point, down from last week when it averaged 3.98 percent. A year ago at this time, the 5-year ARM averaged 3.46 percent.

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

Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.