Mortgage rates drop slightly amid omicron uncertainty

Rates could rise after next Fed meeting

Mortgage rates dip slightly as the market awaits new information about the omicron variant.  (iStock)

Mortgage rates decreased slightly this week, holding relatively steady as the market awaits new information on the COVID-19 omicron variant, according to the latest data from Freddie Mac.

The 30-year fixed-rate mortgage decreased from 3.11% last week to 3.1% annual percentage rate (APR) for the week ending Dec. 9, according to Freddie Mac’s Primary Mortgage Market Survey. This is up from 2.71% at the same time last year. 

"Mortgage rates have moved sideways over the last several weeks, fluctuating within a narrow range," Freddie Mac Chief Economist Sam Khater said. "Going forward, the path that rates take will be directly impacted by more information about the Omicron variant as it is revealed and the overall trajectory of the pandemic. In the meantime, rates remain low and stable, even as the nation faces declining housing affordability and low inventory."

If you want to take advantage of low mortgage interest rates to lower your monthly payments, visit Credible to find your personalized rate and see how much you could save without affecting your credit score.


Mortgage rates hold steady for four consecutive weeks

The 15-year mortgage rate also saw a slight drop, down from 2.39% last week to 2.38%, according to Freddie Mac. This is up from last year’s 2.26%. The five-year Treasury-indexed hybrid adjustable-rate mortgage also dropped from 2.49% last week to 2.45%. This is down from 2.79% last year.

"The Freddie Mac fixed rate for a 30-year loan fell one basis point to 3.1% this week, marking the fourth consecutive week of mostly sideways movement," George Ratiu, manager of economic research, said. "Investors reacted to the job openings report, pointing to a widespread labor shortage likely to put upward pressure on wages into 2022."

Mortgage interest rates remain at historic lows but could soon begin to rise. Borrowers can take advantage of today’s rates by refinancing, which could help them save on their monthly mortgage payments over the life of the loan. Homeowners can visit Credible to compare multiple mortgage lenders at once and choose the best option for them.


Markets wait on Fed’s monetary policy decisions

As the Federal Reserve considers its next steps for its monetary policy, refinance rates seem to be in a holding pattern. Markets are waiting ahead of the Fed's December meeting when it's expected to continue discussing its plans to taper its economic stimulus, which could create higher interest rates. 

"Markets are focused on this week’s Consumer Price Index and indications about the inflation trajectory, as the Federal Reserve’s FOMC meets next week," Ratiu said. "The central bank has been indicating that it may speed up its asset tapering and possibly resort to other changes in monetary policy to stem what looks to be a longer-lasting strong inflation."

If you are interested in seeing how much you could save by refinancing your mortgage with today’s current mortgage rates, contact Credible to speak to a home loan expert.

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