Iran Conflict Influences Drop in Mortgage Rates
January 10, 2020
The 30-year fixed-rate mortgage averaged 3.64% this week, the lowest level in thirteen weeks. Sam Khater, Freddie Mac’s chief economist, says rates dropped as investors sought the safety of the U.S. Treasury’s fixed-income markets in light of the U.S.’s escalating turmoil with Iran. That said, “the drop in mortgage rates, combined with the strong labor market, should propel a continued rise in home buyer demand,” Khater says.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 9:
- 30-year fixed-rate mortgages: averaged 3.64%, with an average 0.7 point, falling from last week’s 3.72% average. Last year at this time, 30-year rates averaged 4.45%.
- 15-year fixed-rate mortgages: averaged 3.07%, with an average 0.7 point, falling from last week’s 3.16% average. A year ago, 15-year rates averaged 3.89%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.30%, with an average 0.3 point, falling from last week’s 3.46% average. A year ago, 5-year ARMs averaged 3.83%.
Updated: May 28, 2020