Mortgage Rates Ring in New Year With a Dip

Borrowers kicked off 2018 as mortgage rates dip. 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.”

The spread between the 30-year fixed-rate mortgage and five-year hybrid adjustable-rate mortgage is at the lowest since 2009, Kiefer says.

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, mortgage rates dip 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, mortgage rates dip 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, mortgage rates dip from last week’s 3.47 percent average. A year ago, 5-year ARMs averaged 3.33 percent.