Freddie Mac: Fixed Mortgage Rates Continue To Decline

Mortgage rates resumed their decline during the week ending Feb. 25, with the average rate for a 30-year fixed-rate mortgage (FRM) reaching 3.62%, down from 3.65% the week prior, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the 30-year FRM averaged 3.80%.

According to the report, this decline aids home buyer affordability amid a tight supply of for-sale homes in many markets.

The average rate for a 15-year FRM was 2.93%, down from 2.95% the previous week. A year ago at this time, the 15-year FRM averaged 3.07%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.79%, down from 2.85%. A year ago, the five-year ARM averaged 2.99%.

“Yields on the 10-year Treasury continued their downward trend this week after a small rally the previous two weeks,” says Sean Becketti, chief economist for Freddie Mac. “The 30-year mortgage responded, falling three basis points to 3.62 percent.”

“Since the beginning of 2016, 30-year rates have fallen almost 40 basis points, helping housing markets sustain their momentum into this year,” Becketti adds. “Earlier this week, the National Association of Realtors announced existing-home sales were up four percent month-over-month in January and up 11 percent from last year.”


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