“Disappointing April employment data once again kept a lid on Treasury yields, which have struggled to stay above 1.8% since late March,” said Sean Becketti, Freddie Mac chief economist. “As a result, the 30-year mortgage rate fell 4 basis points to 3.57%, 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.”
This was the third consecutive week that saw mortgage rates drop, according to Freddie Mac. The 30-year FRM rate of 3.57% is down from last week’s average of 3.61%. Last year at this time, the 30-year FRM averaged 3.85%.
The 15-year FRM dropped to 2.81% from last week’s average of 2.86%. A year ago at this time, the 15-year FRM had an average rate of 3.07%.
The average interest rate for the 5-year Treasury-indexed adjustable-rate mortgage was also down, dropping to 2.78% from last week’s average of 2.80%. Last year at this time, the 5-year ARM averaged 2.89%.
Mortgage rates have hit their lowest point so far in 2016, and the average rate for the 30-year fixed-rte mortgage has hit a three-year low, according to new data from Freddie Mac.