Mortgage rates continued to trend downward during the week ended Feb. 11, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the sixth consecutive week that mortgage rates decreased – this despite ongoing market volatility.
The average rate for a 30-year fixed-rate mortgage (FRM) was 3.65%, down from 3.72% the previous week. A year ago at this time, the 30-year FRM averaged 3.69%.
The average rate for a 15-year FRM was 2.95%, down from 3.01%. A year ago at this time, the 15-year FRM averaged 2.99%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.83%, down from 2.85% the previous week. A year ago, the five-year ARM averaged 2.97%.
“The 30-year mortgage rate dropped another seven basis points this week to 3.65 percent,” says Sean Becketti, chief economist for Freddie Mac, in a release. “This week’s drop leaves the mortgage rate just 6 basis points above last year’s low of 3.59 percent.”
“In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form,” Becketti adds. “The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period. If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing.”