Average 30-Year Mortgage Rate Continues Slide

The average rate for a 30-year fixed-rate mortgage remained near lows last seen in December of 2009 as it continued its slide, the Freddie Mac Primary Mortgage Market Survey for the week ended May 27 found. Freddie said instability in financial markets overseas led to the decline. This instability at one point lowered the benchmark 10-year Treasury yield to near 3.1% on Tuesday, but there has been somewhat of a rebound since then and as of late morning Thursday that yield was closer to 3.3%. The average weekly 30-year FRM rate as of Thursday was 4.78%, down from 4.84% in the latest week and 4.91% a year ago. The average 15-year FRM during the week ended May 27 was 4.21%, the lowest it has been since Freddie started tracking this type of loan in August 1991. This was down from 4.24% the week before and 4.53% the year before. In contrast to other loan types, the average rate for a five-year Treasury indexed hybrid adjustable-rate mortgage rose during the week ended May 27 to 3.97% from 3.91% the previous week but was still considerably lower than a year ago when it was 4.82%. The average one-year Treasury ARM rate dropped to 3.95% during the week ended May 27, a low not seen since the week ending May 27, 2004 when it was 3.87%. A week ago the average one-year Treasury ARM rate was 4.00% and a year ago it was 4.69%. Average points during the week ended May 27 were 0.7 for all the aforementioned loan types except one-year Treasury ARMs, for which average points were 0.6. "These low rates will help to elevate homebuyer affordability and soften the effects of the sunset of the homebuyer tax credit," said Frank Nothaft, Freddie Mac vice president and chief economist.