Mortgage rates declined for the third consecutive week as the 30-year, fixed-rate mortgage averaged just above its record low while the 15-year FRM hit a new all-time record low.
The Freddie Mac survey showed 15-year FRM, a popular refinancing choice, averaged 3.11%, down from last week when it averaged 3.21%. The rate broke its previous low of 3.13% in March. A year ago, the average rate for a 15-year FRM was 4.13%.
The 30-year FRM averaged 3.88% for the week ending Thursday, down from the prior week's average of 3.98%. Last year at this time, the 30-year FRM averaged 4.91%.
Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.85%, down from 2.86% the prior week and down from 3.78% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.80%, up from last week when it averaged 2.78% and down from 3.25% last year.
The lower rates arrive on the heels of a weaker than expected employment report in March.
“Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast,” said Frank Nothaft, Freddie Mac chief economist.
“On a more positive note, the Federal Reserve reported hiring was steady, or showed a modest increase, across many of its districts in its April Beige Book of regional economic conditions,” Nothaft added.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM fell to 4.11% from 4.25%, while the 15-year FRM dropped to 3.32% from 3.42%. The 5/1 ARM inched down to 3.03% from 3.15%.