Mortgage rates continued to drop this week, as the average rate for a 30-year, fixed-rate mortgage fell to 3.55%, the lowest since November 2016, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 4.51%.
The average rate for a 15-year fixed-rate mortgage was 3.03%, down from 3.07%.
A year ago at this time, the average rate for a 15-year was 3.98%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.32%, down from 3.35%.
A year ago, the average rate for a five-year ARM was 3.82%.
“The drop in mortgage rates continues to stimulate the real estate market and the economy,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years.
“Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, which is equivalent to about $140 each month,” he adds. “The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”