For the third consecutive month, information compiled by Freddie Mac shows that mortgage rates increased slightly on a year-over-year basis. As of end of December 2019, the 30-year FRM – Commitment rate, increased by two basis points to 3.72 percent from 3.70 percent in November. The cycle peak was 4.87 percent in 2018 November.

The Federal Reserve maintained the benchmark interest rate in December, at the range of 1.50-1.75 percent. Outlook expressed by FOMC members noted that the current stance of policy would remain appropriate so long as incoming information on the economy was consistent with the outlook.

At the end of December, the 10-year Treasury rate, was at 1.92 percent. It was at 1.77 percent at the end of November. Although up slightly compared to a few weeks ago, the lower rate 10-year Treasury rate has contributed to lower mortgage interest rates in the last few weeks compared to earlier this year. The average 30-Year Fixed market rate, according to Freddie Mac, was at 3.74 percent at the end of December. At the beginning of 2019, the average 30-Year Fixed market rate was 4.51 percent.

Tags: FOMC, freddie mac, home mortgage, monetary policy