Mortgage Rates Plunge To New Record

Another week, another new record.

The 30-year fixed-rate mortgage dropped to 2.86 percent this week, the lowest rate in history, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. Freddie Mac has been tracking mortgage rates since 1971.

The survey found:

  • The 30-year rate dropped from 2.93 percent last week to 2.86 percent with an average 0.8 point. A year ago at this time, the average was 3.56 percent.
  • The 15-year fixed-rate mortgage averaged 2.37 percent with an average 0.7 point, down from last week’s 2.42 percent and last year’s 3.09 percent.  
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.11 percent with an average 0.2 point, up from last week’s 2.93 percent and last year’s 3.36 percent.

“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery,” said Sam Khater, Freddie Mac’s Chief Economist. “These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months. However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”