Friday
July 1, 2016

Market Unrest Pushes Down Mortgage Rates

      |
-A A +A

Market Unrest Pushes Down Mortgage Rates

For the third consecutive week, mortgage rates edged down, with the 30-year fixed-rate mortgage continuing its run below 4 percent, Freddie Mac reports in its weekly mortgage market survey.

"The Freddie Mac mortgage rate survey had difficulty keeping up with market events this week," says Sean Becketti, Freddie Mac's chief economist. "The 30-year mortgage rate dropped 11 basis points to 3.81 percent, the lowest rate in three months. This drop reflected weak inflation and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries. However, the survey was largely complete prior to Wednesday's Treasury rally that drove the yield on the 10-year Treasury below 2 percent, down 29 basis points since the end of 2015."

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 21:

  • 30-year fixed-rate mortgages: averaged 3.81 percent, with an average 0.6 point, dropping from last week's 3.92 percent average. Last year at this time, 30-year rates averaged 3.63 percent.
  • 15-year fixed-rate mortgages: averaged 3.10 percent, with an average 0.5 point, falling from last week's 3.19 percent average. A year ago, 15-year rates averaged 2.93 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91 percent, with an average 0.5 point, dropping from last week's 3.01 percent average. Last year at this time, 5-year ARMs averaged 2.83 percent.

Source: Freddie Mac