The 30-year fixed-rate mortgage averaged 6.49% in the week ending December 1, down from 6.58% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.11%.
Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation. But in the last couple of weeks, mortgage rates have tumbled following reports that indicated inflation may have finally reached its peak.
“Mortgage rates continued to drop this week as optimism grows around the prospect that the Federal Reserve will slow its pace of rate hikes,” said Sam Khater, Freddie Mac’s chief economist.
But even with softening rates and easing prices, Khater said, economic uncertainty is tamping down homebuyer demand as we enter the last month of the year.
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey only includes borrowers who put down 20% and have excellent credit. But many buyers who put down less money upfront or have less-than-perfect credit will pay more than the average rate.
This is a developing story and will be updated.
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