Although most analysts fully expect mortgage rates to increase through 2017, the year kicked off with rates moving lower during the first two weeks of January.
According to Freddie Mac’s Primary Mortgage Market Survey, during the week ended Jan. 12, the average rate for a 30-year, fixed-rate mortgage (FRM) was 4.12%, down from 4.20% the previous week. A year ago at this time, the 30-year FRM averaged 3.92%.
The average rate for a 15-year FRM was 3.37%, down from 3.44%. A year ago at this time, the 15-year FRM averaged 3.19%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 3.23%, down from 3.33%. A year ago, the five-year ARM averaged 3.01%.
“After absorbing a mixed December jobs report, the 10-year Treasury yield fell eight basis points,” says Sean Becketti, chief economist for Freddie Mac, in a statement. “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.”