Mortgage rates continue to drop as optimism grows that the Federal Reserve will slow down the pace of its rate hikes. Mortgage rates are tied to the 10-year treasury. But even with the past few weeks of declines, the rate for the 30-year fixed-rate mortgage is more than double what it was a year ago.
Currently the average 30-year fixed-rate mortgage stands at 6.49 percent, according to Freddie Mac, one of two government entities that buys and packages mortgages into mortgage-backed securities. A year ago, the rate was 3.05 percent.
“Even as rates decrease and home prices soften, economic uncertainty continues to limit homebuyer demand as we enter the last month of the year,” reports Freddie Mac.