Primary Mortgage Market Survey
. That’s down from last week when it averaged 3.78% and a year ago when the rate reached 4.4%.
"Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability,” Len Kiefer, deputy chief economist of Freddie Mac, said. “Existing home sales
in February increased slightly, but less than expected, to a seasonally adjusted annual rate of 4.88 million units.”
The 15-year FRM this week averaged 2.97% with an average 0.6 point, down from last week when it averaged 3.06%. A year ago at this time, the 15-year FRM averaged 3.42%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92% this week with an average 0.4 point, down from last week when it averaged 2.97%. A year ago, the five-year ARM averaged 3.1%, according to Freddie Mac.
The one-year Treasury-indexed ARM averaged 2.46% this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.44%.
Mortgage rates this week returned to the lowest point of 2015, a level seen three previous times from mid-January to early February. The catalyst was the Federal Reserve's downgrading of economic and inflation expectations for this year, which pushed back the expected timing of an initial interest rate hike, according to Bankrate.com
Both bond yields and mortgage rates moved lower as expectations on the timing of interest rate hikes are tempered. Mortgage rates are closely related to yields on long-term government bonds.
Mortgage rates fell for a second consecutive week, with the benchmark 30-year fixed mortgage rate (FRM) retreating to 3.69%, according to Freddie Mac’s latest