Mortgage rates decreased this week, with the average rate for a 30-year, fixed-rate mortgage falling eight basis points to 2.90%, down from 2.98% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 3.03%.
“Mortgage rates decreased this week following the dip in U.S. Treasury yields,” explains Sam Khater, chief economist for Freddie Mac, in a statement. “While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report. We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.”
The average rate for a 15-year fixed-rate mortgage was 2.20%, down from 2.26% the previous week and down from 2.51% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.52%, down from 2.54% the previous week and down from 3.02% a year ago.
Photo: David Kristianto