Mortgage rates moved lower for the second consecutive week on the market's reaction to November's employment numbers, according to Freddie Mac.
But interest rates are still well above their levels of one year ago.
The 30-year fixed-rate mortgage averaged 4.12% for the week ending Jan. 12, down from last week when it averaged 4.2%. A year ago at this time, the 30-year FRM averaged 3.92%.
"After absorbing a mixed December jobs report, the 10-year Treasury yield fell 8 basis points. The 30-year mortgage rate moved in tandem with Treasury yields, the second decline since the presidential election," said Sean Becketti, chief economist at Freddie Mac.
The 15-year fixed-rate mortgage averaged 3.37%, down from last week when it averaged 3.44%. A year ago at this time, the 15-year averaged 3.19%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.23%, down from last week when it averaged 3.33%, while a year ago it averaged 3.01%.
"The December jobs report showed 156,000 jobs added, barely meeting many experts' expectations, while wage growth was at the high end of expectations at 0.4%. If strong wage gains persist, they may push inflation and interest rates higher," Becketti added.