This week, the average U.S. fixed rate for a 30-year mortgage held steady at 3.74%. Although this rate remains unchanged from last week’s percentage, it’s still well below the 4.55% of the year-earlier week, according to the Freddie Mac Primary Mortgage Market Survey.
This week, the 15-year FRM averaged 3.19%, remaining unchanged from last week’s rate. This time last year, the 15-year FRM came in at 4.01%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.45% this week, rising from last week’s rate of 3.37%. Last year, the 5-year ARM averaged 4%.
Sam Khater, Freddie Mac’s chief economist said throughout 2019, mortgage rates have averaged just 3.9%, marking the fourth-lowest annual average level since 1971, which is when Freddie Mac started its weekly survey.
However, he warns that housing affordability, which has been a major cause of concern for homeowners across the country, will continue to pose a threat in 2020.
“While the outlook for the housing market is bright, worsening housing affordability is no longer a coastal phenomenon and is spreading to many interior markets and it is a threat to the continued recovery in housing and the economy,” Khater said.
The image below highlights this week’s changes: