Mortgage Rates Reach New Three-Year Low

Average fixed mortgage rates continue to fall for the third consecutive week, according to a new survey by Freddie Mac. This information follows the disappointing employment data released in April.

Mortgage rates are at the lowest point thus far in 2016, according to the Freddie Mac Primary Mortgage Market Survey.

The new data found that a 30-year fixed-rate mortgage averaged 3.57% with an average 0.5 point for the week ending May 12, 2016, which is down from last week when it averaged 3.61%, the survey states. When compared to a year ago, the 30-year FRM averaged 3.85%.

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Last week, the 15-year FRM averaged 2.81% with an average 0.5 point, down from the previous week when it averaged 2.86%. When compared to last year at this time, the 15-year FRM averaged 3.07%.

The other finding from this set of data refers to the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM), which averaged 2.78% last week with an average 0.5 point.

These numbers are down from the previous week when the 5-year ARM averaged 2.80%. They are also down from the average of 2.89%, last year at this time.

“Disappointing April employment data once again kept a lid on Treasury yields, which have struggled to stay above 1.8 percent since late March,” said Sean Becketti, chief economist at Freddie Mac. “As a result, the 30-year mortgage rate fell 4 basis points to 3.57 percent, a new low for 2016 and the lowest mark in 3 years. Prospective homebuyers will continue to take advantage of a falling rate environment that has seen mortgage rates drop in 14 of the previous 19 weeks.”

Written by Alana Stramowski

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