Mortgage rates continued to fall this week, with the average rate for a 30-year fixed-rate mortgage dropping nine basis points to 3.51%, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s down from 3.6% the previous week and down from 4.46% a year ago.
“This week’s mortgage rates were the second lowest in three years, supporting homebuyer demand and leading to higher refinancing activity,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“Borrowers who take advantage of these low rates can improve their cash flow by lowering their monthly mortgage payments, giving them more money to spend or save,” he adds.
For the week ended Jan. 30, the average rate for a 15-year fixed-rate mortgage was 3%, down from 3.04% the previous week and down from 3.89% a year earlier.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.24%, down from 3.28% the previous week and down from 3.96% a year ago.