The weekly Freddie Mac report on mortgage interest rates as of January 2 showed fixed rates were down slightly compared to the prior week. However, fixed rates are running close to the month average for December as a whole.
The fixed rate for a 30-year mortgage was down 2 basis points to 3.72% as of January 2, the same as the average for December and only narrowly above the 3.70% rate for November.
The 10-year fixed rate for mortgages was down 3 basis points to 3.16%, just below the 3.17% average for December and the same as the 3.16% for November.
The rate for a 5/1-year ARM was up 1 basis point to 3.46% after rising 8 basis points in the prior week. The 5/1-year ARM rate for all of December was 3.41%, the same as in November.
Mortgage rates remain significantly below those seen a year ago and at levels that are attractive to homebuyers. There should be continued support for the housing market with home affordability enhanced by low rates.
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