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On the radar: Freddie Max mortgage rates fall in early January

As of January 9, Freddie Mac reported mortgage interest rates fell from the prior week.

The 30-year fixed rate declined 8 basis points to 3.64%, its lowest since the 3.64% in the September 26, 2019 week. It was also 8 basis points below the December average of 3.72%.

The 15-year fixed rate was down 11 basis points to 3.07%, and its lowest since 3.05% in the October 10, 2019 week. It was 9 basis points under the 3.16% December average.

The rate for a 5/1-year ARM was down 16 basis points to 3.30% its lowest since 3.30% in the September 5, 2019 week and down 9 basis points from the 3.39% average for December.

The decline could be sufficient to coax some of the sidelined potential homebuyers on the margins to once more shop for a home, especially if they can negotiate a favorable price. A more active housing market now could sap some homebuying from the spring months. A lot of this could be to contracts on new housing not yet under construction if supplies of more sought-after existing homes remain limited.

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