Mortgage rates began 2015 by sliding even further below 4% as bond yields dropped amid concerns about the economy.
According to the latest Freddie Mac Primary Mortgage Market survey, the 30-year, fixed-rate mortgage averaged 3.73% for the week ended Jan. 8, down from last week’s 3.87%. In 2014, it averaged, 4.51%.
The 15-year, fixed-rate mortgage dropped to 3.05% from 3.15% a week prior. This is also down from 3.56% a year ago.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage decreased from 3.01% last week to 2.98%. Last year, it averaged 3.15%.
Also declining, the 1-year Treasury-indexed ARM averaged 2.39%, down from 2.40% last week and 2.56% a year ago.
“Mortgage rates fell to begin the year as 10-year Treasury yields slid beneath 2 percent for the first time in three months. Meanwhile, the Fed minutes indicated ongoing discussion regarding the timing of the first rate hike,” said Frank Nothaft, vice president and chief economist with Freddie Mac.
And the results from Bankrate were no different, with the 30-year, FRM falling to 3.85%, compared to 3.99% last week.
The 15-year, FRM declined to 3.16%, down from 3.27% last week, while the 5/1 ARM decreased to 3.20%, down from 3.32% a week prior.
“As we start 2015, concerns about the global economy still have a tight grip on markets, bringing bond yields and mortgage rates lower. Financial markets have been jittery as investors mull the continued decline in oil prices, and what that says about the weakness of the global economy,” analysts with Bankrate said.