Mortgage rates have moved lower for the sixth week in a row, prodded by ongoing market volatility, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®).
“The 30-year mortgage rate ped another 7 basis points [last] week to 3.65 percent,” says Sean Becketti, chief economist at Freddie Mac. “[Last] week’s drop leaves the mortgage rate just 6 basis points above last year’s low of 3.59 percent.”
The average 15-year fixed-rate mortgage (FRM) averaged 2.95 percent with an average 0.5 point, according to the survey, and the average 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent with an average 0.4 point—both decreases.
“In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form,” Becketti says. “The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period. If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing.”
Source: Freddie Mac
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