Mortgage interest rates dropped for the first time since the presidential election in the first week of the new year, Freddie Mac reported.
The 30-year fixed-rate mortgage averaged 4.2%, down 12 basis points from the week before, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, the 30-year fixed-rate mortgage averaged 3.97%.
Similarly, the 15-year fixed-rate mortgage fell 11 basis points from a week ago to 3.44%, though this week’s figure was still above last year’s 3.26%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage moved up three basis points to 3.33% and was up 24 basis points from the same period in 2016.
“This marks the first time since 2014 that mortgage rates opened the year above 4%,” Freddie Mac Chief Economist Sean Becketti said in a news release. “Despite this week’s breather, the 66-basis-point increase in the mortgage rate since Nov. 3 is taking its toll — the Mortgage Banker Association’s refinance index plunged 22% this week.”