Mortgage rates dropped across the board this week, as the average rate for a 30-year fixed rate mortgage fell to 3.75%, down from 3.81% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 4.54%.
The average rate for a 15-year fixed-rate mortgage was 3.18%, down from 3.23% the previous week.
A year ago at this time, the average rate for a 15-year was 4.02%.
For the week ended July 25, the average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.47%, down slightly from 3.48%.
A year ago at this time, the five-year ARM averaged 3.87%.
The drop follows a slight increase in average rates last week.
“Mortgage rates continued to hover near three-year lows and purchase application demand has responded, rising steadily over the last two months to the highest year-over-year change since the fall of 2017,” says Sam Khater, chief economist for Freddie Mac, in a statement. “While the improvement has yet to impact home sales, there’s a clear firming of purchase demand that should translate into higher home sales in the second half of this year.”