Mortgage Rates Drop at Yearend 12-23-2021

“The market volatility resulting from the COVID-19 Omicron variant is causing mortgage rates to decrease,” said Sam Khater, Freddie Mac’s Chief Economist. “As the year comes to a close, the housing market is proceeding steadily. However, rates are expected to increase in 2022 which will impact homebuyer demand as well as refinance activity.”

The 30-year fixed-rate mortgage averaged 3.05 percent with an average 0.7 point for the week ending December 23, 2021, down from last week when it averaged 3.12 percent. A year ago at this time, the 30-year FRM averaged 2.66 percent.

15-year fixed-rate mortgage averaged 2.30 percent with an average 0.7 point, down from last week when it averaged 2.34 percent. A year ago at this time, the 15-year FRM averaged 2.19 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.37 percent with an average 0.4 point, down from last week when it averaged 2.45 percent. A year ago at this time, the 5-year ARM averaged 2.79 percent.