Mortgage rates in the United States eased this week , but still above the 4.5 percent threshold for the most popular loan .
Average risen steadily over the last three weeks after the Federal Reserve announced in December that it is – buying bonds to reduce stimulation . This program has helped offset the dramatic rise in property prices and the increasing affordability held while the market has stabilized . Despite recent gains , prices continue to remain historically low standards .
The average rate on 30 -year fixed mortgage fell 0.02 percentage points to 4.51 percent , according to a recent survey from the mortgage buyer Freddie Mac . At this time last January , the average 30 – year fixed rate mortgage was 3.40 percent – an increase of 1.11 percent year – on – year .
Meanwhile, the average rate on a 15 – year saw a slight increase for the fourth consecutive week , inching up 3.56 percent , up from 3.55 percent fixed rate loan . A year ago , an average of 2.66 percent – 0.90 percent increase from year to year .
Average hybrid adjustable-rate mortgages are mixed . Five – year ARM saw significant progress in the past week , rising 0.10 percent to 3.15 percent . A year ago , the five -year ARM average of 2.67 percent .
Average one -year ARM remained stable at 2.56 percent week -on – week .
Frank Nothaft , vice president and chief economist for Freddie Mac , pointed to the lack of reporting as one of the main reasons for the recent flattening of rates .
” Mortgage rates were little changed amid light week of economic reports , ” Nothaft said in a statement . ” From some of the releases , the private sector added 238,000 jobs in December is expected to exceed the market consensus and following the upward revision of 14,000 jobs in November , according to the ADP Research Institute . Also , the Institute for Supply Management reported a greater delay in the growth of the non – manufacturing in a month December from the market consensus forecast . ”
Home sales have slowed since the Federal Reserve said it was her – buying bonds would reduce the incentive of $ 10 million per month at the beginning of this month , however, the housing market in general continues to show signs of recovery .
The National Association of Realtors ® recently predicted that existing home sales to be up 5.1 million this year – an increase of 10 percent year -on-year , the highest number recorded since 2006 .
Most experts predict that interest rates will rise in the coming months , but there are still many that remain stable in the short term . In the last Mortgage Trend Index Bankrate.com , half credit analysts believe prices will remain unchanged over the next week .