Mortgage rates fell for a third straight week, with the average rate for a 30-year fixed-rate mortgage dipping to 2.94%, down from 2.96% last week, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).
A year ago at this time, the 30-year averaged 3.28%.
“Since the most recent peak in April, mortgage rates have declined nearly a quarter of a percent and have remained under three percent for the past month,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Low rates offer homeowners an opportunity to lower their monthly payment by refinancing and our most recent research shows that many borrowers, especially Black and Hispanic borrowers, who could benefit from refinancing still aren’t pursuing the option.
“Additionally, the low mortgage rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than 12 years and may lead to higher mortgage rates in the summer,” Khater adds.
The average rate for a 15-year fixed-rate mortgage was 2.26%, down from 2.30% last week and down from 2.72% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.59% down from 2.70% the previous week and down from 3.18% a year ago.
Photo: Markus Winkler