One Present Under the Tree: Lower Mortgage Rates

WASHINGTON–There was some joy beneath the tree this holiday season, at least for the mortgage markets, as the rate on the fixed-rate, 30-year term continued to fall. Freddie Mac reported the 30-year average declined to 5.14% for the week ended Dec. 24, down more than a point from the 6.17% average one year earlier. The average is the lowest mark since Freddie Mac’s began conducting the survey in 1971. Other mortgage rates are also down, with the 15-year, fixed-rate mortgage at 4.91% (down from 5.79% one year ago), and approaching its all-time low of 4.84%, recorded in April of 1971. Averages on various ARM products were mixed, with some slight declines and some slight increases. Freddie reported the average cost on a 30-year, fixed was 0.8 point, with the average on a 15-year fixed at 0.8.