Mortgage rates drop in early December

December 17th, 2013

Owning a home is more affordable, as rates have dropped

According to the latest Primary Mortgage Market Survey from government-sponsored entity Freddie Mac, mortgage rates fell during the week ending Dec. 12, coming off an 11-week high.

The interest on a 30-year fixed-rate mortgage averaged 4.42 percent compared to 4.46 percent the week prior. Similarly, 15-year FRMs had an average interest rate of 3.43 percent, down from 3.47 percent a week before.

Though the changes were small, the downward trend in mortgage interest rates is a good sign that the U.S. economy is holding strong. Mortgage rates will vary over the next few months as investors wait to see whether the Federal Reserve will begin tapering its stimulus.

Each month, the Fed puts $85 billion into the market to provide a cushion. When the threat of ending this stimulus arises, mortgage rates jump. With this in mind, now may be a prime time for buyers who are sitting on the fence. Mortgage rates have fallen and may not stay down for long.

“The economy is holding its own despite facing serious challenges,” Keith Gumbinger, vice president of HSH.com, told Bloomberg. “The likelihood is somewhat higher rates rather than somewhat lower rates over the next 60 to 90 days.”