Mortgage rates remain low to keep housing affordable

Freddie Mac's Primary Mortgage Market Survey reported mortgage rates continue to stay low, keeping housing affordable for buyers in the market.

According to the report, the 30-year fixed-rate mortgage averaged 3.99 percent for the week ending December 8, down from 4 percent the week before. The 15-year fixed-rate mortgage averaged 3.27 percent, down from last week's average of 3.30 percent.

While housing remains affordable for qualified borrowers, the outlook of the market into 2012 has consumers concerned. Fannie Mae's November National Housing Survey found 22 percent of Americans expect home prices to increase over the next three years, while 22 percent expect prices to decline.

In addition, 33 percent of Americans expect mortgage rates to increase over the next 12 months, and 68 percent believe right now is a good time to buy a home and only 10 percent think it is a good time to sell. Over the next year, Americans predict home prices will increase by an average of 3.2 percent, and 63 percent say they would buy their next home rather than rent.

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