According to Freddie Mac's latest Primary Mortgage Market Survey for the second week of December 2018, U.S. mortgage rates dropped significantly after several weeks of moderating.
Sam Khater, Freddie Mac's chief economist, says, "The 30-year fixed fell to 4.63 percent this week - the lowest it has been since mid-September. Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates. While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.63 percent with an average 0.5 point for the week ending December 13, 2018, down from last week when it averaged 4.75. A year ago at this time, the 30-year FRM averaged 3.93 percent.
15-year FRM this week averaged 4.07 percent with an average 0.5 point, down from last week when it averaged 4.21 percent. A year ago at this time, the 15-year FRM averaged 3.36 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.04 percent with an average 0.3 point, down from last week when it averaged 4.07. A year ago at this time, the 5-year ARM averaged 3.36 percent.
According to the U.S. Department of Housing and Urban Development, sales of newly built, single-family homes in the U.S. fell to a seasonally adjusted annual rate of 544,000 units in October 2018, after an upwardly revised September report.
According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates dropped in early December 2018, after weeks of moderating. Mortgage rates declined this week amid a steep sell-off in U.S. stocks.
According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending November 23, 2018, mortgage applications in the U.S. increased 5.5 percent from one week earlier. This week's results include an adjustment for the Thanksgiving holiday.