Mortgage rates this week fell to the lowest level since 1971, due mainly to market volatility caused by the spread of the coronavirus.
According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed rate mortgage this week was 3.29%, down from 3.45% last week and down from 4.41% a year ago.
Sam Khater, chief economist for Freddie Mac, says the average rate for a 30-year is at “the lowest level in its nearly 50-year history.”
“Meanwhile, mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down,” Khater says. “Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”
The average rate for a 15-year fixed-rate mortgage was 2.79%, down from 2.95% last week and down from 3.83% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.18%, down from 3.20% last week and down from 3.87% a year ago.