Mortgage rates edged down during the week ended Aug. 23, with the average rate for a 30-year fixed-rate mortgage (FRM) falling to 4.51%, down from 4.53%, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the third consecutive week that mortgage rates decreased.
A year ago at this time, the 30-year FRM averaged 3.86%.
Sam Khater, chief economist for Freddie Mac, says the dip brought rates back to the level seen in mid-April.
“Backed by very strong consumer spending, the economy is red-hot this month, which is in turn rippling through the financial markets and driving equities higher,” Khater says in a statement. “Unfortunately, the same cannot be said about the housing market, where it appears sales activity crested in late 2017. Existing-home sales have now stepped back annually for the fifth straight month, and purchase mortgage applications this week were barely above year ago levels.”
“It is clear affordability constraints have cooled the housing market, especially in expensive coastal markets,” he adds. “Many metro areas desperately need more new and existing affordable inventory to break out of this slump.”
The average rate for a 15-year FRM was 3.98%, down from 4.01% the previous week. A year ago at this time, the 15-year FRM averaged 3.16%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.82%, down from 3.87%. A year ago at this time, the five-year ARM averaged 3.17%.
