After rising for two consecutive weeks, mortgage rates dropped sharply, with the average rate for a 30-year, fixed-rate mortgage falling 15 basis points to 3.50%, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s down from 3.65% the previous week and down from 4.06% a year ago.
For the week ended March 26, the average rate for a 15-year fixed-rate mortgage was 2.92%, down from 3.06% the previous week and down from 3.57% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.34%, up from 3.11% last week but down from 3.75% a year ago.
Driving the decrease was “the Federal Reserve’s swift and significant efforts to stabilize the market,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“Similar to other segments of the economy, real estate demand is softening,” Khater says. “However, the combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets.”