As forecasted, mortgage rates continued to drop in the latest Freddie Mac Primary Mortgage Market Survey. And not only did rates drop, but they now sit at their lowest mark of the year.

Last week, mortgage rates fell slightly, but remained above the 4% mark. Freddie Mac Chief Economist Sean Becketti said at the time, “The 30-year mortgage rate fell three basis points this week to 4.02%. However, this week’s survey closed prior to Wednesday’s flight to quality.”

The latest survey results showed that the 30-year fixed-rate mortgage averaged 3.95% for the week ending May 25, 2017. This is down from last week when it averaged 4.02%, but up from 3.64% a year ago. 

The 15-year FRM averaged 3.19%, down from last week when it averaged 3.27%. In 2016, the 15-year FRM averaged 2.89%. 

In addition, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.07% this week, falling from last week’s 3.13%. A year ago at this time, the 5-year ARM averaged 2.87%.

“As we predicted, the 30-year mortgage rate fell seven basis points this week in a delayed reaction to last week’s sharp drop in Treasury yields. The survey rate stands at 3.95% today, a new low for the year,” said Becketti about this week’s rates.

The chart below shows how mortgage rates have performed over the last year.

Click to enlarge

(Source: Freddie Mac)