Mortgage rates in the United States have continued their downward trajectory, offering potential relief to prospective homebuyers. The 30-year fixed-rate mortgage averaged 6.19% as of Dec. 4, a decrease from the previous week’s average of 6.23%.
This latest data from Freddie Mac’s Primary Mortgage Market Survey (PMMS) indicates a consistent trend, marking the second straight week of rate decreases following the Thanksgiving holiday.
Sam Khater, Freddie Mac’s chief economist, emphasized the improved borrowing landscape relative to the previous year. “Compared to this time last year, mortgage rates are half a percent lower, creating a more favorable environment for homebuyers and homeowners,” he stated in a press release.
The difference is statistically significant for market participants. At this time in 2024, the 30-year fixed averaged 6.69%. The current rate represents a full half-percentage point reduction year over year.
Similar trends were observed in shorter-term loan products. The 15-year fixed-rate mortgage averaged 5.44%, down from 5.51% the prior week. This is also a notable decline from the same period last year, when the 15-year rate averaged 5.96%.
The PMMS tracks rates for conventional, conforming home purchase loans for borrowers with excellent credit who put 20% down.
Freddie Mac’s findings align with trends observed by other industry participants. For example, the Mortgage Bankers Association’s data released Dec. 3 showed the 30-year rate dipping to 6.32% following a steady period of growth.
