Average rates for fixed-rate mortgages dropped to new lows in Freddie Mac’s latest weekly primary market survey.
The average rate for a 30-year FRM declined to 3.84% from 3.88% a week ago. This is down three basis points from the previous low of 3.87% last recorded during the week ending Feb. 9.
The average 15-year FRM rate during the week ending May 3 fell to 3.07% from 3.12% the previous week, four basis points below the previous lowest 15-year rate of 3.11% last seen during the week ending April 12.
During the most recent week, the average rate for a five-year Treasury-indexed hybrid loan remained unchanged at 2.85% while the average rate for one-year Treasury adjustable-rate mortgages slid four basis points to 2.7%.
Freddie Mac vice president and chief economist Frank Nothaft said in his weekly rate report that signs of slowing economic growth and inflation drove rate-indicative Treasury yields downward during the latest week.
The benchmark 10-year Treasury yield during the period largely remained in a range below 2%. While there was a bump to levels above 2.3% in March that continued in early April, since later in the latter month yields have been drifting lower. At deadline last Thursday morning the 10-year was at 1.93%.
Average points during the week ending May 3 were lowest for one-year Treasury ARMs at 0.6 of a point and highest for 30-year FRMs at 0.8 of a point. Fifteen-year FRMs and five-year Treasury ARMs averaged 0.7 of a point.
A year ago, the 30-year averaged 4.71%, the 15-year averaged 3.89%, the five-year Treasury hybrid averaged 3.47% and the one-year Treasury ARM averaged 3.14%.
