The 30-year fixed-rate mortgage hit an average rate of 3.49% last week, its lowest level since October 2016, according to Freddie Mac.
“Mortgage rates continued the summer swoon due to weaker economic data,” said Sam Khater, Freddie Mac chief economist. “While economic growth is clearly slowing due to rising manufacturing and trade headwinds, economic fundamentals are still solid for US consumers. The unemployment rate is low, housing affordability is improving, homebuyer demand is rising, and home-price growth is stable.”
The 30-year FRM’s average rate of 3.49% last week was down from 3.58% the previous week. A year ago at this time, the 30-year FRM averaged 4.54%.
The 15-year FRM averaged 3% last week, down from 3.06% the week prior. Last year, the 15-year FRM averaged 3.99%.
The 5-year Treasury-indexed hybrid adjustable rate mortgage dropped to 3.30% last week from the prior week’s 3.31%. Last year, the 5-year ARM averaged 3.93%.