Mortgage rates plunged for the third week in a row, with the rate for the 30-year mortgage reaching its lowest level in three years.
The Freddie Mac Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage dipped to 3.45% on Thursday, down from 3.51% a week ago and from 4.41% at this time last year.
The 15-year fixed-year mortgage fell below 3% to an average of 2.97%. A year ago, the 15-year rate averaged 3.84%.
The 5-year Treasury-indexed adjustable-rate mortgage, on the other hand, rose from last week when it averaged 3.24% to 3.32%. A year ago, the 5-year mortgage rate averaged 3.91%
“As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” Freddie Mac Chief Economist Sam Khater said. “The combination of very low mortgage rates, a strong economy, and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”