Mortgage rates fell as reports of the coronavirus spreading outside China led to a sharp drop in the 10-year Treasury yield, according to Freddie Mac.
“Given the recent volatility of the 10-year Treasury yield, it’s not surprising that mortgage rates again have dropped,” said Sam Khater, Freddie Mac’s chief economist. “These low rates combined with high consumer confidence continue to drive home sales upward, a trend that is likely to endure as we enter spring.”
The 30-year fixed-rate mortgage (FRM) saw a four-basis-point decline this week, down from 3.49% to 3.45%. Last year, the 30-year FRM was 4.35%.
The 15-year FRM also dipped four basis points to 2.95%, down from last week's 2.99% and the previous year's 3.77%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) moved back to 3.20% from the prior week when it averaged 3.25% and the 3.84% average a year ago at this time.