How low will they go?
The 30-year fixed-rate mortgage hit a record low of 3.15 percent this week, Freddie Mac announced Thursday. It is the third time rates have reached record lows for the third time in the last few months.
“These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week—a remarkable turnaround given the sharp contraction in economic activity,” Freddie Mac Chief Economist Sam Khater said.
The Freddie Mac report also found:
- The 30-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point for the week, down from last week when it averaged 3.24 percent and 3.99 percent a year ago.
- The 15-year fixed-rate mortgage averaged 2.62 percent with an average 0.7 point, down from last week’s 2.70 percent and 3.46 percent a year ago.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.13 percent with an average 0.4 point, down from last week’s 3.17 percent and 3.60 percent last year.
“Refinance activity remains elevated and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year,” Khater said. “This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy.”