Mortgage rates decreased significantly this week, with the average rate for a 30-year fixed rate mortgage falling to 3.60%, down from 3.75% the previous week and down from 4.59% a year earlier, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s the lowest average rate for the 30-year since November 2016.
The decrease is primarily attributable to the recent trade wars which have led to volatility in the global markets.
“There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.”
For the week ended August 8, the average rate for a 15-year fixed-rate mortgage was 3.05%, down from 3.20% the previous week.
A year ago at this time, the average rate for a 15-year was 4.05%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.36%, down from 3.46%.
A year ago, the average rate for a five-year ARM was 3.90%.