For the second straight week, the housing market overall, and especially prospective homebuyers, are getting a break: average mortgage rates across the nation are dropping — for now. The benchmark 30-year fixed rate hovers at about 4 percent.
Freddie Mac Thursday put the average 30-year loan rate at 4.12 percent, down from 4.20 percent last week. Bankrate.com reported that the average 30-year fixed-mortgage rate is 3.97 percent on Friday, down 2 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.98 percent, Bankrate says.
Freddie Mac’s chief economist Sean Becketti says the 30-year mortgage rate moved in tandem with Treasury yields falling 8 basis points to 4.12 percent, based on Freddie Mac’s index. Becketti said it was the second decline since the presidential election.
“The December jobs report showed 156,000 jobs added, barely meeting many experts’ expectations, while wage growth was at the high end of expectations at 0.4 percent,” Becketti said. “If strong wage gains persist, they may push inflation and interest rates higher.”
According to Bankrate’s current 30-year rate of 3.97 percent “you’ll pay $475.69 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $1.15 lower.”
Here is Freddie Mac’s overview of rates for the week:
30-year fixed-rate mortgage (FRM) averaged 4.12 percent, with an average 0.5 point for the week ending January 12, 2017, down from last week when it averaged 4.20 percent. A year ago at this time, the 30-year FRM averaged 3.92 percent.
15-year FRM this week averaged 3.37 percent, with an average 0.5 point, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.19 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23 percent this week, with an average 0.5 point, down from last week when it averaged 3.33 percent. A year ago, the 5-year ARM averaged 3.01 percent.