Mortgage Rates Continue to Set Record Lows

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According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 3.15 percent for the week ending May 28. This is the lowest level Freddie Mac has seen in the history of its survey, going back to the early 1970s.

A year ago at this time, the 30-year FRM averaged 3.99 percent. 

“These unprecedented rates have certainly made an impact, as purchase demand rebounded from a 35 percent year-over-year decline in mid-April to an eight percent increase as of last week – a remarkable turnaround given the sharp contraction in economic activity,” says Sam Khater, Freddie Mac’s chief economist.

“Additionally, refinance activity remains elevated, and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year,” he adds. “This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy.”

The 15-year fixed-rate mortgage averaged 2.62% with an average 0.7 point, down from last week, when it averaged 2.7 percent. A year ago at this time, the 15-year FRM averaged 3.46 percent. 

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent with an average 0.4 point, down from last week, when it averaged 3.17 percent. A year ago at this time, it averaged 3.6 percent.

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