Mortgage rates dropped for a third consecutive week, with the average rate for a 30-year, fixed-rate mortgage falling to 2.97%, down from 3.04% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 3.33%.
It was the first time since February that the average rate for a 30-year fell below 3%.
“The drop in mortgage rates is good news for homeowners who are still looking to take advantage of the very low rate environment,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market. Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position.”
The average rate for a 15-year fixed-rate mortgage was 2.29% down from 2.35% last week and down from 2.86% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.83%, up from 2.80% last week but down from 3.28% a year ago.
Photo: Phil Hearing