Freddie Mac reported yesterday 2018 began with mortgage rates down slightly from both the previous week and the same week last year.

• 30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an average 0.5 point for the week ending Jan. 4, 2018, down from last week when it averaged 3.99 percent. A year ago at this time, the 30-year FRM averaged 4.20 percent.
• 15-year FRM this week averaged 3.38 percent with an average 0.5 point, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.44 percent.
• five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.45 percent this week with an average 0.4 point, down from last week when it averaged 3.47 percent. A year ago at this time, the five-year ARM averaged 3.33 percent.

Freddie Mac deputy chief economist Len Kiefer said the news is good, but may not last for long.

“With the FOMC minutes showing continued support for gradual increases in policy rates from many participants and inflation rates remaining low, there isn’t much upward pressure on long-term rates at the moment,” Kiefer said in a statement. “Whether that changes due to a tighter labor market and the economic impact of tax reform remains to be seen.”