by Candyd Mendoza
The 30-year fixed-rate mortgage dropped to a 10-month low, boding well for the spring homebuying season, according to Freddie Mac’s latest Primary Mortgage Market Survey.
“The U.S. economy remains on solid ground, inflation is contained and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down to their lowest level in 10 months,” said Sam Khater, Freddie Mac chief economist.
Khater translated this as good news for consumers who are preparing to look for homes for during the upcoming spring homebuying season.
“Mortgage rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer bargaining power than they did the last few years,” he said.
Other key facts in the report:
- The 30-year fixed-rate mortgage (FRM) averaged 4.41% with an average 0.4 point for the week ending Feb. 7, down from last week when it averaged 4.46%. A year ago at this time, the 30-year FRM averaged 4.32%.
- The 15-year FRM this week averaged 3.84% with an average 0.4 point, down from last week when it averaged 3.89%. A year ago at this time, the 15-year FRM averaged 3.77%.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.91% with an average 0.3 point, down from last week when it averaged 3.96%. A year ago at this time, the 5-year ARM averaged 3.57%.