Mortgage rates dropped again this week, with the average rate for a 30-year fixed-rate mortgage falling to 3.60%, down from last week’s average of 3.65%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for 30-year was 4.45%.
“Rates fell to the lowest level in three months and are about a quarter point above all-time lows,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The very low rate environment has clearly had an impact on the housing market as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy and improving financial market sentiment.”
For the week ended Jan. 23, the average rate for a 15-year fixed-rate mortgage was 3.04% down from 3.09% the previous week.
A year ago at this time, the average rate for a 15-year was 3.88%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.28%, down from 3.39%.
A year ago at this time, the average rate for a five-year ARM was 3.90%.