Mortgage Rates Ring in New Year With a Dip

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It looks like borrowers have kicked off 2018 with a mortgage rate drop.  The 30-year fixed-rate mortgage is now down a quarter of a percentage point from a year ago.

“Treasury yields fell from a week ago, helping to drive mortgage rates down to start the year,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The 30-year fixed-rate mortgage fell four basis points from a week ago to 3.95 percent in the year’s first survey. Despite increases in short-term interest rates, long-term interest rates remain subdued.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 4:

30-year fixed-rate mortgages: averaged 3.95 percent, with an average 0.5 point, dropping from last week’s 3.99 percent average. Last year at this time, 30-year rates averaged 4.20 percent.
15-year fixed-rate mortgages: averaged 3.38 percent, with an average 0.5 point, dropping from last week’s 3.44 percent average. A year ago, 15-year ARMs averaged 3.44 percent.
5-year ARMs: averaged 3.45 percent, with an average 0.4 point, falling from last week’s 3.47 percent average. A year ago, 5-year ARMs averaged 3.33 percent.

So what does this mean? Now is still a good time to purchase a home!!! We have seen a slight increase in inventory, therefore there is more homes to choose from. Contact The Shubzda Group today if you are interested in buying your next dream home! We have qualified lenders on our team that can tell you exactly how much home you can afford. 

Source: Freddie Mac