Mortgage rates fell to a new low for the year this week, but are 38 basis points higher than they were one year ago, according to Freddie Mac.

30-Year FRM 15-Year FRM 5/1 Year ARM
Average Rates 3.82% 3.12% 3.14%
Fees & Points 0.5 0.5 0.5
Margin N/A N/A 2.74

The 30-year fixed-rate mortgage averaged 3.82% for the week ending Aug. 31, down from last week when it averaged 3.86%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.46% and 3.65% for all of last year.

"The 10-year Treasury yield fell to a new 2017 low on Tuesday. In response, the 30-year mortgage rate dropped 4 basis points, reaching a new year-to-date low for the second consecutive week. However, recent releases of positive economic data could halt the downward trend of mortgage rates," Sean Becketti, Freddie Mac's chief economist, said in a press release.

On Aug. 29, the 10-year Treasury yield closed at 2.13%, its year-to-date low, after falling to 2.09% twice during the trading day.

The 15-year fixed-rate mortgage averaged 3.12%, down from last week when it averaged 3.16%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.77%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.14%, down from last week when it averaged 3.17%. A year ago at this time it averaged 2.83%.

"Mortgage rates were essentially flat last week, holding near their lowest levels since November 2016," Erin Lantz, Zillow's vice president of mortgages, said when that company released its own rate tracker on Tuesday.

"This week should be more volatile. Inflation and labor market data due this week will provide this most important view of the American economy before the Fed meets in mid-September, and rates could move if the data contain any surprises. In addition, rates could rise temporarily if ongoing federal budget negotiations break down," Lantz said.

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