U.S. mortgage rates drop to 3-month low

Source: Xinhua | 2018-12-14

U.S. mortgage rates dropped to a 3-month low last week, as the window of opportunity for homebuyers remained open, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending December 13, 30-year fixed-rate mortgage (FRM) in the United States dropped to 4.63 percent from previous week's figure of 4.75 percent, according to Freddie Mac.
For the same period a year ago, the 30-year FRM averaged 3.93 percent, according to Freddie Mac.
"The 30-year fixed fell to 4.63 percent this week - the lowest it has been since mid-September," said Sam Khater, chief economist of Freddie Mac.
"Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates," said Khater.
The data showed that 15-year FRM this week also dropped to 4.07 percent from previous week's reading of 4.21 percent. For the same period a year ago, the figure was 3.36 percent.
"While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months," Khater added.
Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rates since April 1971.