Mortgage rates fall for 3rd straight week

by Francis Monfort11 Sep 2017
Mortgage rates fell last week for the third consecutive week, with the benchmark 30-year fixed mortgage rate falling to 3.95%, a new 10-month low, according to the weekly national survey released by Bankrate.com.

The latest rate compares to 3.97% the previous week. Average discount and origination points for the 30-year fixed mortgage were 0.28. The average rate for the larger jumbo 30-year fixed mortgage remained at 3.99%.

The 15-year fixed mortgage posted an average rate of 3.17%, also a new 10-month low, compared to 3.20% a week ago. The mortgage type had 0.25 average discount and origination points during the week. The 5-year adjustable-rate mortgage (ARM) average rate fell to 3.45% from 3.47%, with average discount and origination points of 0.34. The 7-year ARM average rate fell to 3.63%.

Bankrate.com said the decreases follow a selloff on Wall Street early in the week that saw a shift from stocks to bonds. Additionally, the company said rates remained at low levels due to the persistence of low inflation, the higher chance of the Federal Reserve remaining on the sidelines for the rest of the year, and worries about the potential economic impact from Hurricane Harvey and Hurricane Irma.

Meanwhile, Freddie Mac’s Primary Mortgage Market Survey showed that the average rate for the 30-year fixed mortgage dropped to a year-to-date-low. The mortgage type had a 3.78% average rate for the week ending Sept. 7, compared to 3.82% in the previous period. It had 0.5 average points. The average rate was 3.44% during the same period last year.

The 15-year fixed mortgage had a 3.08% average rate, falling from the 3.12% average a week ago. Average points were 0.5. The 5-year Treasury-indexed hybrid ARM posted an average rate of 3.15% with an average 0.4 point, an increase from the previous 3.14% average.

"The 10-year Treasury yield fell nine basis points this week, reaching a new 2017-low for a second consecutive week. The 30-year mortgage rate followed, dropping four basis points to a year-to-date low of 3.78%,” said Sean Becketti, chief economist for Freddie Mac.


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