ABBA First Mortgage News

Rates are stable- or are they?

For the week ending January 2, Freddie Mac announced that 30-year fixed rates moved down to 3.72% from 3.74% the week before. The average for 15-year loans decreased to 3.16% and the average for five-year ARMs moved up slightly to 3.46%. A year ago, 30-year fixed rates averaged 4.51%, more than .75% higher than today. “The combination of improved economic data and market sentiment has led to stability in interest rates, which have hovered around 3.7 percent for nearly the last two months. The stability is welcome news after the interest rate turbulence of the last year, which caused a slowdown in the housing market and other interest rate sensitive sectors. The low rate environment combined with the red-hot labor market is setting the stage for a continued rise in home sales and home prices,” said Sam Khater, Chief Economist, Freddie Mac.

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.

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