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Source: CNN — 

Mortgage rates dipped again this week, dropping for the fourth week in a row.

The 30-year fixed-rate mortgage averaged 6.33% in the week ending December 8, down from 6.49% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.10%.

Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation. But mortgage rates have tumbled in the last couple of weeks, following reports that indicated inflation may have finally reached its peak.

The rate drops come amid concerns over lackluster economic growth, said Sam Khater, Freddie Mac’s chief economist.

“Over the last four weeks, mortgage rates have declined three quarters of a point, the largest decline since 2008,” said Khater. “While the decline in rates has been large, homebuyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. But many buyers who put down less money upfront or have less-than-perfect credit will pay more than the average rate.