Freddie Mac: Mortgage rates drop six weeks straight
Get closer to 2015 lows
The downward trend in mortgage rates continued for the sixth consecutive week amid ongoing market volatility, the latest results of Freddie Mac’s Primary Mortgage Market Survey found.
The 30-year fixed-rate mortgage dipped to 3.65% for the week ending Feb. 11, 2016, down from last week when it averaged 3.72%. A year ago, the 30-year FRM averaged 3.69%. The average 30-year fixed is now hovering just above its 2015 low of 3.59%.
Also dropping, the 15-year FRM this week averaged 2.95%, down from 3.01% last week. In 2015, the 15-year FRM averaged 2.99%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to 2.83% this week, a decline from last week’s 2.85%. A year ago, the 5-year ARM averaged 2.97%.
“In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form,” said Sean Becketti, chief economist with Freddie Mac.
“The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period. If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing,” he said.
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(Source: Freddie Mac)