Mortgage Rates Drop for Fifth Week in a Row
December 15, 2022
Mortgage rates fell once again this week, dipping for the fifth straight week.
The 30-year fixed-rate mortgage averaged 6.31% in the week ending December 15, down from 6.33% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.12%.
Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of harsh interest rate hikes to tame soaring inflation. But mortgage rates have tumbled in the last several weeks, following data that showed inflation may have finally reached its peak.
Inflation, as measured by the Consumer Price Index, cooled considerably in November and was at its lowest level in nearly a year, according to the Bureau of Labor Statistics’ closely watched index, released on Tuesday.
However, the Fed announced on Wednesday that it will continue to raise interest rates — albeit by a smaller amount than it has been, while acknowledging that inflation is easing. The rate hike was already factored in to where mortgage rates are, but signaled more good news on inflation.
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