ABBA First Mortgage News

Although rates have been falling, a steady, slight worsening is forecasted

Rates held after dropping sharply the previous week. For the week ending December 20, Freddie Mac announced that 30-year fixed rates fell slightly to 4.62% from 4.63% the week before. The average for 15-year loans remained at 4.07% and the average for five-year adjustables declined to 3.98%. A year ago, 30-year fixed rates averaged 3.9%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “The response to the recent decline in interest rates is already being felt in the housing market. After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. This modest rebound in sales indicates that homebuyers are very sensitive to rate changes – and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.” 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

Leave a Reply