Freddie Mac: Mortgage Rates Hit New Low For The Year

Fixed mortgage rates hit yet another low for the year during the week ended May 12, according to Freddie Mac’s Primary Mortgage Market Survey.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.57%, down from 3.61% the previous week. A year ago at this time, the 30-year FRM averaged 3.85%.

The average rate for a 15-year FRM was 2.81%, down from 2.86%. 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 2.78%, down from 2.80%. A year ago, the five-year ARM averaged 2.89%.

“Disappointing April employment data once again kept a lid on Treasury yields, which have struggled to stay above 1.8 percent since late March,” says Sean Becketti, chief economist for Freddie Mac, in a release. “As a result, the 30-year mortgage rate fell four basis points to 3.57 percent, a new low for 2016 and the lowest mark in three years. Prospective home buyers will continue to take advantage of a falling rate environment that has seen mortgage rates drop in 14 of the previous 19 weeks.”

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