Mortgage rate dropped slightly from a 3-month low last week, as home sales was expected to rebound in the United States, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending Dec. 20, 30-year fixed-rate mortgage (FRM) in the United States dropped to 4.62 percent from previous week's figure of 4.63 percent, according to Freddie Mac.
For the same period a year ago, the 30-year FRM averaged 3.94 percent, according to Freddie Mac.
"After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months," said Sam Khater, chief economist of Freddie Mac.
"This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes - and given the further drop in rates we've seen this month, we expect to see a modest rebound in home sales as well," Khater added.
Freddie Mac also said that 15-year FRM this week remained at 4.07 percent, which was unchanged from previous week's reading. For the same period a year ago, the figure was 3.38 percent.
Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.
For the week ending Dec. 20, 30-year fixed-rate mortgage (FRM) in the United States dropped to 4.62 percent from previous week's figure of 4.63 percent, according to Freddie Mac.
For the same period a year ago, the 30-year FRM averaged 3.94 percent, according to Freddie Mac.
"After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months," said Sam Khater, chief economist of Freddie Mac.
"This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes - and given the further drop in rates we've seen this month, we expect to see a modest rebound in home sales as well," Khater added.
Freddie Mac also said that 15-year FRM this week remained at 4.07 percent, which was unchanged from previous week's reading. For the same period a year ago, the figure was 3.38 percent.
Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.
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