30-Year Mortgage Rate Drops Below 4% for 2nd Time in History
30-Year Mortgage Rate Drops Below 4% for 2nd Time in
History
US Mortgage giant Freddie Mac reported Thursday that mortgage rates continued to hover just above record lows for a sixth straight week this week, with the 30-year fixed loan average dipping below the 4 percent mark for just the second time in history. The most popular of all US home loans, the 30 year, fixed-rate mortgage averaged 3.99 percent this week, down from 4.00 percent a week ago, according to Freddie's weekly survey. The mortgage hit an all-time low average of 3.94 percent nine weeks ago.
The 15 year fixed loan, meanwhile fell to an average of 3.27 percent this week from last week's 3.30, just one basis point above the all-time low of 3.26 percent, also set nine weeks ago. Interest rates have been near record-low levels for much of the year, yet home sales are on pace for their worst year since 1997. Mortgage rates closely track the yield on the 10-year treasury note, which typically falls when stock markets go through periods of volatility, as nervous investors shift their money to the relative safety of bonds, raising their prices and dropping their yields.
While home sales are treacherously low, the low interest rates did spark a surge in refinancing demand last week. While average rates for fixed loans declined, adjustable-rate mortgages rose this week. The average for a five year adjustable-rate mortgage, or ARM, rose from 2.90 percent last week to 2.93 percent, while the average for a one year ARM rose from 2.78 to 2.80 percent. To calculate average mortgage rates, Freddie Mac surveys lenders across the nation from Monday to Wednesday of a given week.
US Mortgage giant Freddie Mac reported Thursday that mortgage rates continued to hover just above record lows for a sixth straight week this week, with the 30-year fixed loan average dipping below the 4 percent mark for just the second time in history. The most popular of all US home loans, the 30 year, fixed-rate mortgage averaged 3.99 percent this week, down from 4.00 percent a week ago, according to Freddie's weekly survey. The mortgage hit an all-time low average of 3.94 percent nine weeks ago.
The 15 year fixed loan, meanwhile fell to an average of 3.27 percent this week from last week's 3.30, just one basis point above the all-time low of 3.26 percent, also set nine weeks ago. Interest rates have been near record-low levels for much of the year, yet home sales are on pace for their worst year since 1997. Mortgage rates closely track the yield on the 10-year treasury note, which typically falls when stock markets go through periods of volatility, as nervous investors shift their money to the relative safety of bonds, raising their prices and dropping their yields.
While home sales are treacherously low, the low interest rates did spark a surge in refinancing demand last week. While average rates for fixed loans declined, adjustable-rate mortgages rose this week. The average for a five year adjustable-rate mortgage, or ARM, rose from 2.90 percent last week to 2.93 percent, while the average for a one year ARM rose from 2.78 to 2.80 percent. To calculate average mortgage rates, Freddie Mac surveys lenders across the nation from Monday to Wednesday of a given week.
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