After ticking up slightly the previous two weeks, mortgage rates fell during the week ended May 21, with the average rate for a 30-year fixed-rate mortgage dropping to 3.24%, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s down from 3.30% the previous week and down from 4.06% a year ago.
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic,” says Sam Khater, chief economist for Freddie Mac, in a statement. “As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago. Going forward, mortgage rates have room to decline as mortgage spreads remain elevated.”
The average rate for a 15-year fixed-rate mortgage was 2.70%, down from 2.72% the previous week and down from 3.51% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.17%, down slightly from 3.18% the previous week, and down from 3.68% a year ago.