Mortgage Rates Fall in First Weeks of 2015


The official mortgage rate report for 2015 is out by Freddie Mac and revealed the long-term borrowing costs fell this week.

30-year fixed-rate mortgage
For mortgage borrowers with excellent credit, the average rate on a 30-year fixed mortgage fell to 3.73 percent last week (ending on Jan. 8, 2015). This is a decline from the previous week where the mortgage rate was 3.87 percent. This new average rate of 3.73 percent is the lowest the mortgage rate has been since May 2013.

A year ago, 30-year rates averaged approximately 4.51 percent.

15-year fixed rate mortgage
The rates for a 15-year fixed-rate mortgage declined to 3.05 percent last week (ending on Jan. 8, 2015), from 3.15 percent the previous week.

What does this mean?
Federal Reserve policymakers are concerned about continued low inflation, according to the Federal minutes included in Freddie Mac’s rate report.

Mortgage rates tend to stay on track with Treasury yields. The Treasury yields have declined over the past two weeks as well. This could be indications of investors’ unease over a possible slowdown in China and Europe.

Refinance at
Loan Type

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The upside to all of this could be that American borrowers could once again benefit from what the Wall Street Journal calls “global growth jitters.”

The reduced mortgage rates can be an opportunity for new borrowers to lock in good mortgage rates.
The Mortgage Bankers Association measures the total loan application volume and reported a decrease of 9.1 percent from two weeks ago. (The offices of the MBA were closed last week, thus there was not a new report from last week.)

Additionally, even though mortgage refinance applications are down, this could also be a chance for homeowners to refinance in the new year. (Many analysts site the holiday season for the decline in mortgage applications in the final two weeks of the year.) Refinance applications account for 65 percent of all mortgage applications in the past two weeks.

Despite a decline in mortgage rates, uncertainty over the decrease in the price of oil, and a “jittery” stock market, many economists say the U.S. economy is stronger than it has been in several years.



Mailynne serves as a content strategist and writer for She is ahighly task-oriented strategic planner and experienced writer. Over the past 10 years, Mailynne has managedcontent for both large corporations, non-profits and businesses. She specializes in managing digital marketing,branding and web development content. Mailynne has worked with a variety of local, national and international organizations.


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