Mortgage Rates Fall to Start 2016: Freddie Mac

Mortgage rates rang in the new year by keeping below 4%, according to the Freddie Mac Primary Mortgage Market Survey.

The average 30-year fixed-rate mortgage dropped down this week to 3.97% from 4.01% the week before. This figure nevertheless stands a good 24 basis points higher than during the same period a year ago.

Additionally, rates for both the 15-year fixed-rate and the five-year Treasury-indexed hybrid adjustable-rate mortgages rose. The 15-year FRM increased two basis points from a week ago, to 3.26%. And the five-year Treasury-indexed hybrid ARM lifted one basis point week-over-week to 3.09%.

During the same period in 2015, the 15-year FRM averaged 3.05%, while the rate for the five-year Treasury-indexed hybrid ARM was at 2.98%.

The global economy was the determining factor in the rate movements seen this week, according to Sean Becketti, Freddie Mac's chief economist.

"Concerns about overseas economic developments have dominated financial markets to start the year," Becketti said in a Jan. 7 news release. "U.S. Treasury bond yields fell amidst a global equity selloff and flight to safety. In response, the 30-year mortgage rate dipped 4 basis points to 3.97%."