Mortgage rates continued to fall this week, as the average rate for a 30-year fixed rate mortgage plummeted to its lowest level in three years, according to Freddie Mac’s Primary Mortgage Market Survey.
For the week ended Feb. 6, the average rate for a 30-year was 3.45%, down from 3.51% last week and down from 4.41% a year ago.
“As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” explains Sam Khater, chief economist for Freddie Mac, in a statement. “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.”
The average rate for a 15-year fixed-rate mortgage was 2.97%, down from 3.00% last week and down from 3.84% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.32%, up from 3.24% last week but down from 3.91% a year earlier.