Could another refinancing 'boomlet' be on the way?
The average rate for all types of residential loans tracked by Freddie Mac continued to decline this week and as of Thursday morning, a benchmark long-term rate-indicative bond yield on the secondary market hit a low not seen for several months.
Early Thursday morning the yield on the 10-year Treasury was at 3.07%. Freddie Mac vice president and chief economist Frank Nothaft attributed declining rates to more weak economic indicators.
In its new rate survey, Freddie found that on average 30-year FRMs were being offered at 4.6% with 0.7 points for the week ending May 26, down slightly from 4.61% the previous week.
The yield on 15-year FRMs settled at 3.78% with 0.7 points, compared to 3.8% the previous week — and 4.21% a year ago. (The 30-year rate during the week ending May 26 also was lower than a year ago when it was 4.84%)
For five-year hybrid Treasury-indexed ARMs, the average rate slid to 3.41% with 0.5 of a point from 3.48% a week ago and 3.97% a year ago.
One-year Treasury ARMs were being offered at 3.11% with 0.5 of a point, down from 3.15% the previous week and 3.95% a year ago.
