Mortgage rates increased slightly this week but the recent surge in refinance activity continued, according to Freddie Mac’s Primary Mortgage Market Survey.
The average rate for a 30-year fixed rate mortgage was 3.47%, up from 3.45% last week but down significantly from 4.37% last year.
The average rate for a 15-year fixed-rate mortgage was 2.97%, flat compared with last week but down from 3.81% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.28%, down from 3.32% last week and down from 3.88% a year ago.
“With mortgage rates hovering near a five-decade low, refinance application activity is once again surging, rising to the highest level in seven years,” says Sam Khater, chief economist Freddie Mac, in a statement. “This surge coupled with strong purchase activity means that total mortgage demand remains robust, reflective of a solid economic backdrop and a very low mortgage rate environment.”