“Treasury yields fell last week following both the FOMC's meeting and a disappointing advance estimate for second quarter GDP,” said Sean Becketti, chief economist for Freddie Mac. “Mortgage rates, which had moved up seven basis points over the past three weeks, responded by erasing most of those gains, falling five basis points to 3.43% this week for the 30-year fixed-rate mortgage. Mortgage rates have been below 3.5% every week since June 30. Borrowers are taking advantage of these low rates by refinancing. The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity up 55% since last year.”
The average interest rate of 3.43% for the 30-year FRM is down from last week’s 3.48%. Last year at this time, the average rate for the 30-year FRM was 3.91%.
The average rate for the 15-year FRM was also down this week, sliding to 2.74% from last week’s 2.78%. A year ago, the average rate for the 15-year FRM was 3.13%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.73% this week, down from last week’s 2.78%. Last year, the 5-year ARM averaged 2.94%.
Mortgage rates are in decline after creeping slightly higher for three consecutive weeks, according to new data from Freddie Mac.