30-year mortgage rate drops to 3.24%

by Candyd Mendoza22 May 2020

Mortgage rates continued to stay low for the past four weeks as a result of the measures the government has to take to buoy the economy during the coronavirus recession, according to Freddie Mac.

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30%, giving potential buyers a good reason to continue shopping even amid the pandemic,” Freddie Mac Chief Economist Sam Khater said.

The interest rate for the 30-year mortgage saw a four-basis point dip from a week ago, down to 3.24% Thursday. The 30-year fixed-rate mortgage averaged 4.06% a year ago at this time.

Meanwhile, the 15-year fixed-rate mortgage was two basis points lower than last week's average of 2.72%, down to 2.70%. The 15-year FRM was 3.51% last year at this time.

Lastly, the 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped from 3.18% to 3.17% and was below the previous year's average of 3.68%.

“As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago. Going forward, mortgage rates have room to decline as mortgage spreads remain elevated," Khater said.