Freddie Mac’s Primary Mortgage Market Survey, released on Thursday, revealed that mortgage rates have remained stable over the past couple of months.
Sam Khater, Freddie Mac’s chief economist, said that “interest rate sensitive sectors such as new auto and home sales have clearly softened the outlook for the economy, enabling homebuyers to purchase mortgage application rates indicative of the fact that despite higher mortgage rates this year there are buyers on the fence waiting for the right time to buy .”
The report said that 30-year fixed-rate mortgage (FRM) averaged 4.81 percent, (an average 0.5 point) for the week ending November 29, 2018, unchanged from last week. The previous year recorded an average of 3.90 percent the previous year in 30-year FRM.
Commenting on Freddie Mac’s release, Danielle Hale, Chief Economist for Realtor.com, said, “Today's mortgage rate data shows the thirty-year fixed rate mortgage held at 4.81 percent, giving buyers something extra to be thankful for. With mortgage rates forecasted to resume their climb in 2019 and approach 5.5 percent one year from now, persistent buyers will be well-advised to take advantage of the extended early holiday gift.”
The 15-year FRM during the week averaged 4.25 percent (an average 0.4 point), a slight increase from 4.24 percent in the past week. The previous year’s 15-year FRM averaged 3.30 percent, the report noted.
According to the report, in 2018, the 15-year FRM averaged 3.30 percent. There is an upward trend in 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaging 4.12 percent (an average 0.3 point), increasing from 4.09 the previous week. Last year, the 5-year ARM averaged 3.32 percent, it found.
The report stated that average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.