On the market level, stocks had a great year in 2019, with the major indices gaining over 20%, despite slower growth. This could be attributed to lower interest rates which prevailed in 2019. Freddie Mac pegged the average 30-year fixed rate home loan at 3.9% for 2019, the fourth lowest average in the past 50 years. These lower interest rates also pumped up the real estate markets, as many took advantage of lower rates to purchase new homes or refinance their existing homes. In November, new home sales were 17% higher than one year ago. Of course, as we have seen, markets can turn on a dime and certainly the threat of the escalation of tensions in the Middle East provides an example of that possibility.
Rates fell due to Mid-East tensions in the past week, but started to rise late in the survey week as tensions eased. For the week ending January 9, Freddie Mac announced that 30-year fixed rates moved down to 3.64% from 3.72% the week before. The average for 15-year loans decreased to 3.07% and the average for five-year ARMs moved down to 3.30%. A year ago, 30-year fixed rates averaged 4.45%, more than .75% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Rates fell to the lowest level in thirteen weeks, as investors sought the quality and safety of the U.S. Treasury fixed income markets. The drop in interest rates, combined with the strong labor market, should propel a continued rise in homebuyer demand.”
ABBA First Mortgage has continued to offer some of the lowest rates and terms in both NC and TN. Give us a call toll free at 866-676-3349 for your no obligation, free customized quote today.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.