Smart Borrower Blog

Mortgage Rates Sink as Investors Wait for Market Action

Dec 6th, 2017 @ 3:00 PM by Amber Nelson

Long-term mortgage interest rates fell in the latest week, according to a survey from NerdWallet, a sign that investors are unsure about the direction of the economy.

The average rate on 30-year fixed-rate mortgage fell to an APR of 4.03% during the week ended December 6, 2017, down from 4.09% the week before. That is virtually unchanged from a year ago when the average rate was 4.0%.

The rate on the 15-year fixed-rate mortgage loan dropped as well, falling to an average of 3.62%, down from 3.70% yesterday, but up from 3.40% during the same week of 2016.

The average rate on a 5/1 adjustable rate mortgage (ARM) slipped to 4.18%, down just 0.01% from the day before but up significantly from the previous year when it averaged just 3.42%.

Investors have been dealing with plenty of mixed signals in the past few weeks, as the Federal Reserve anticipates raising its target rate at its December meeting and Congress gets nearer to passing an overhaul of the tax code. While those issues would push rates higher, things like a recent report showing weak growth in wage growth, a possible government shutdown, and foreign turmoil are causing investors to pull back and stick with safer bonds, pushing mortgage rates lower.

Mortgage rates have made very little real movement in the past 6 months. Even as the economy has cautiously moved forward during that time, there has been enough chaos in domestic politics and foreign finances to keep investors on their toes. It seems as if everyone is just waiting for the world to settle down and make sense before making any definite moves.

By historical standards, mortgage rates remain near all-time lows. Those looking to buy a home or refinance an existing home loan are the beneficiaries of the current rate climate.



About Amber Nelson
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to and

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