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Economic Report: U.S. mortgage rates slip, giving some relief to homebuyers


The numbers: Mortgage rates took a dip this week, as the U.S. economy shows signs of cooling off. 

The 30-year fixed-rate mortgage averaged 6.33% as of January 12, according to data released by Freddie Mac on Thursday. 

That’s down 15 basis points from the previous week — one basis point is equal to one hundredth of a percentage point. 

Last week, the 30-year was at 6.48%. Last year, the 30-year was averaging at 3.45%

The average rate on the 15-year mortgage fell to 5.52%.

The fall in rates comes on the back of inflation in the U.S. economy ebbing. The cost of living in America fell 0.1% in December, the first drop since the onset of the coronavirus pandemic in 2020.

What are they saying? “While mortgage rates have resumed their decline, the market remains hypersensitive to rate movements, with purchase demand experiencing large swings relative to small changes in rates,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“Over the last few weeks latent demand has been on display with buyers jumping in and out of the market as rates move,” he added.

As rates take a dip, demand for refinancing has jumped by 5.1% in the latest week, according to the Mortgage Bankers Association on Wednesday.

Market reaction: The yield on the 10-year Treasury note

slipped to 3.51% during the afternoon trading session on Thursday.

Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at

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