Homebuyers Enjoy Record Low Interest Rates During Holidays
Freddie Mac recently released the results of its Primary Mortgage Market Survey showing averaged fixed-rate mortgage rates at or near all-time lows, helping keep homebuyer affordability high. The 30-year fixed rate averaged 3.91 percent on December 22nd, a new all-time low from the previous low of 3.94 percent. The 15-year fixed rate matched the previous all-time low of 3.21 percent.
“Rates on 30-year fixed mortgages have been at or below four percent for the past eight weeks (prior to December 22nd) and are now almost 0.9 percentage points below where they were at the beginning of the year, which means that today’s homebuyers are paying over $1,200 less per year on a $200,000 loan,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “This greater affordability helped push existing home sales higher for the second consecutive month in November to an annualized pace of 4.42 million, the most since January.”
New construction of single-family homes also showed a back-to-back monthly gain in November to the largest increase since June. Moreover, homebuilder confidence in December rose to its highest reading since May 2010.
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