The New Normal? Mortgage Rates Sink Again

Mortgage rates again sunk this week after topping out at the end of 2016, with the 30-year fixed-rate mortgage averaging 4.12 percent with an average 0.5 point, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The trend, now in its second week, marks a new normal for rates, which rose above 4 percent in a nine-week streak following the election.

“After absorbing a mixed December jobs report, the 10-year Treasury yield fell eight basis points,” says Sean Becketti, Freddie Mac chief economist. “The 30-year mortgage rate moved in tandem with Treasury yields falling eight basis points to 4.12 percent, 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. If strong wage gains persist, they may push inflation and interest rates higher.”

The 15-year fixed-rate mortgage is averaging 3.37 percent with an average 0.5 point, also down, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage is averaging 3.23 percent with an average 0.5 point, according to the Survey.

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