The average rate for a 30-year fixed-rate mortgage hit another all-time low this week, falling to 2.86%, down from 2.93% last week and down from 3.56% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery,” says Sam Khater, chief economist for Freddie Mac, in a statement. “These low rates have ignited robust purchase demand activity, which is up 25 percent from a year ago and has been growing at double digit rates for four consecutive months.
“However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity,” Khater adds.
The average rate for a 15-year fixed-rate mortgage was 2.37% this week, down from 2.42% last week and down from 3.09% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.11%, up from 2.93% the previous week but down from 3.36% a year ago.