Mortgage rates inch downward at year's end

By Polyana da Costa | Bankrate.com – Thu, Dec 27, 2012 3:00 AM EST

Mortgage rates don't seem poised to start the new year at record lows, but they'll be close enough to the bottom.  This is good news for buyers looking to make a home or condo purchase in Fort Lauderdale. 

30 year fixed rate mortgage – 3 month trend

The benchmark 30-year fixed-rate mortgage fell to 3.59 percent from 3.62 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.34 discount and origination points. One year ago, the mortgage index stood at 4.21 percent; four weeks ago, it was 3.52 percent.

The benchmark 15-year fixed-rate mortgage fell to 2.87 percent from 2.89 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.77 percent from 2.78 percent.

Mortgage rates reached record lows numerous times in 2012. The 30-year fixed, which fell below 4 percent for the first time in mid-May, averaged 3.88 percent in 2012. The average for the 5/1 ARM was 2.92 percent. Will borrowers continue to enjoy the low-rate environment in 2013? It depends on your definition of low. "Who knows if we'll hit new all-time lows? But they should be low enough to keep (refinances) and purchases humming along," says John Stearns, a mortgage banker at American Fidelity Mortgage Services in Mequon, Wis.