Monday
August 29, 2016

Why Everyone Is Talking About Mortgage Rates

      |
-A A +A

Why Everyone Is Talking About Mortgage Rates

Borrowing costs got even cheaper for home buyers and refinancers this week, as mortgage rates continued to descend.

The 30-year fixed-rate mortgage averaged 3.66 percent this week, the lowest weekly average since May 23, 2013, Freddie Mac reports in its weekly mortgage market survey. What’s more, the 15-year fixed-rate mortgage dropped below 3 percent, also for the first time since May 2013.

Read more: Loan Demand Posts Biggest Leap in 6 Years

"Mortgage rates fell for the third consecutive week as oil prices plummeted and long term treasury yields continued to drop despite a strong employment report,” says Frank Nothaft, Freddie Mac’s chief economist. The unemployment rate has fallen to 5.6 percent, the lowest since June 2008.

This marked the third consecutive week that mortgage rates lowered as bond yield continued to drop despite a strong employment report, Freddie Mac reports.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 15:

  • 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.6 point, dropping from last week’s 3.73 percent average. A year ago at this time, 30-year rates averaged 4.41 percent.
  • 15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.5 point, dropping from last week’s 3.05 percent average. Last year at this time, 15-year rates averaged 3.45 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.90 percent, with an average 0.4 point, dropping from last week’s 2.98 percent average. A year ago, the 5-year ARM averaged 3.10 percent.
  • 1-year ARMs: averaged 2.37 percent, with an average 0.4 point, dropping from last week’s 2.39 percent average. Last year at this time, 1-year ARMs averaged 2.56 percent.

Source: Freddie Mac