The average rate for a 30-year fixed-rate mortgage rate dropped below 4% for the first time since January 2018 this past week.
For the week ended May 30, the average rate for a 30-year was 3.99%, down from 4.06% 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 4.56%.
“While economic data points to continued strength, financial sentiment is weakening with the spread between the 10-year and the three-month Treasury bill narrowing, as fears of the impact of the trade war with China grow,” says Sam Khater, chief economist for Freddie Mac, in a release. “Lower rates should, however, give a boost to the housing market, which has been on the upswing with both existing and new home sales picking up recently.”
The average rate for a 15-year fixed rate mortgage was 3.46%, down from 3.51%. A year ago at this time, the average rate for a 15-year was 4.06%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.60%, down from 3.68%. A year ago at this time, the average rate for a five-year ARM was 3.80%.