Mortgage Rates Stuck At Record Low

Mortgage rates in the United States didn’t budge from record-low levels this week, Freddie Mac reported Thursday in its weekly Primary Mortgage Market Survey.

The survey found:

  • The 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week, unchanged from last week and down from last year at this time when it averaged 3.73 percent.
  • The 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, also unchanged from last week and down from last year’s 3.19 percent.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.79 percent with an average 0.3 point, down from last week’s 2.86 percent and last year’s 3.36 percent.

“Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher,” said Sam Khater, Freddie Mac’s Chief Economist. “Mortgage spreads – the difference between mortgage rates and the 10-year Treasury rate – are declining from their elevated levels earlier this year. Although today’s mortgage spread is about 1.8 percent and still has some room to move down if the 10-year Treasury continues to rise, it’s encouraging to see that the spread is almost back to normal levels.”

Source: @lenkiefer