Mortgage rates fell for the fourth straight week as bond prices continue to tick upward, according to the latest weekly survey from Freddie Mac.
- 30-Year Fixed averaged 6.33% for the week ending December 8th, down 16 basis points from last week and is now down 73 basis points in just one month. However, despite the almost 75 bip drop rates are still 323 basis points higher than the same time last year.
- 15-Year Fixed averaged 5.67% for the week ending December 8th, down 9 basis points from last week and is now down 69 basis points in just one month. However, despite the big drop, rates are still up 329 basis points when compared to one year ago.
Mortgage-backed securities saw upward price pressure this week with the 30YR UMBS 5.0 up 19 cents to close Wednesday December 7th at $100 on the nose.
- Mortgage-backed securities are now up $4.42 since the beginning of November.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, said the recent drop in rates was the biggest decline in 14 years. “Over the last four weeks, mortgage rates have declined three quarters of a point, the largest decline since 2008. While the decline in rates has been large, homebuyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.”