According to Freddie Mac’s weekly interest rate survey, the average 30-year fixed-rate mortgage was 5.96% for the week ended December 6, down from 6.10% last week.
“With lower consumer spending and personal income gains in October, interest rates on U.S. Treasury securities fell lower this week and mortgage rates followed,” said Frank Nothaft, chief economist at Freddie Mac.
It marked the lowest level since the week ending September 29, 2005, when it averaged 5.91%.
Rates on adjustable-rate mortgages dipped as well, with the average five-year ARM falling to 5.75% from 5.86% last week.
Freddie Mac said rates on 15-year fixed-rate loans fell from 5.73% to 5.65%, the lowest level since the week ending October 13, 2005, when it averaged 5.62%.
The one-year adjustable-rate bucked the downward trend, climbing slightly from 5.43% to 5.46% this week.
“Currently, the federal funds futures market has almost a 100 percent probability that the Fed will lower rates in its December 11 policy committee meeting,” Nothaft added.
“These combined factors will likely diminish upward pressures on mortgage rates over the next few months.”
A year ago, the 30-year averaged 6.11%, the 15-year averaged 5.84%, the five-year ARM averaged 5.92% and the one-year ARM stood at 5.43%.
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