Mortgage rates continued their retreat, helped by volatility in the financial markets and weakened inflation expectations.

According to data released by Freddie Mac, the 30-year fixed-rate average slipped to 4.62 percent with an average 0.4 point. It was 4.63 percent a week ago and 3.94 percent a year ago. The 30-year fixed rate has fallen 32 basis points the past five weeks.

The 15-year fixed-rate average remained the same as last week, holding steady at 4.07 percent with an average 0.4 point. It was 3.38 percent a year ago. The five-year adjustable rate average dropped to 3.98 percent with an average 0.3 point. It was 4.04 percent a week ago and 3.39 percent a year ago. This is the first time since late September that the rate for the 5-year ARM is below 4 percent.

“Big losses in stock markets and softened inflation expectations due to rapidly falling oil prices combined to push rates lower,” said Aaron Terrazas, Zillow senior economist. “Unexpectedly strong existing home sales data provided a welcome salve for a housing market that has been a sore spot for the overall economy in 2018, at least temporarily delaying fears that a softening housing market could herald looming weakness. … We don’t expect meaningful rate movement over the holidays, but the outlook for 2019 suggests, if nothing else, an increasingly uncertain path.”

The Federal Reserve raised its benchmark rate again this week, the fourth increase this year. The Fed doesn’t set mortgage rates, but its decisions influence them. Although Fed Chairman Jerome Powell expressed confidence that the economy is “healthy,” he acknowledged that it appears to be slowing.

“The Fed’s comments make clear that central bankers are in the process of resetting market expectations for 2019,” Terrazas said.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that almost all of the experts it surveyed say rates will go down in the coming week. Greg McBride, chief financial analyst at Bankrate.com, is one who predicts rates will fall.

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