Average Rate For 30-Year Mortgage Falls to Lowest Level in Nearly Two Years

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The average rate for a 30-year fixed rate mortgage fell to 3.82% this week, down from an average of 3.99% last week to reach the lowest level in nearly two years, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the average rate for a 30-year was 4.54%. 

It was the sixth consecutive week that the average rate for a 30-year decreased. This could be good news for home buyers, as rates have been decreasing throughout most of the spring home buying season. This, in turn, is improving affordability.

“While the drop in mortgage rates is a good opportunity for consumers to save on their mortgage payment, our research indicates that there can be a wide dispersion among mortgage rate offers,” cautions Sam Khater, chief economist for Freddie Mac, in a statement. “By shopping around and getting a single additional mortgage rate quote, a borrower can save an average of $1,500.

“These low rates are also good news for current homeowners,” Khater adds. “With rates dipping below four percent, there are over $2 trillion of outstanding conforming conventional mortgages eligible to be refinanced – meaning the majority of what was originated in 2018 is now eligible.”

For the week ended June 6, the average rate for a 15-year fixe rate mortgage was 3.28%, down from 3.46% the previous week. A year ago at this time, the average rate for a 15-year was 4.01%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.52%, down from 3.60%. A year ago at this time, the average rate for a five-year ARM was 3.74%.

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