Mortgage

Mortgage rates drop to three-month low

The average U.S. fixed rate for a 30-year mortgage now sits at 3.6%

The average U.S. fixed rate for a 30-year mortgage fell to 3.6% this week, a three-month low.

That’s 5 basis points below last week and 85 basis points below the 4.45% of the same week last year, according to the Freddie Mac Primary Mortgage Market Survey.

Sam Khater, Freddie Mac’s chief economist, said mortgage rates now are about a quarter of a percentage point above historic all-time lows. The low financing costs are providing a boost to housing demand, he said.

“The very low rate environment has clearly had an impact on the housing market as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy and improving financial market sentiment,” Khater said.

According to the survey, the 15-year FRM averaged 3.04% this week, falling from last week’s rate of 3.09%. This time last year, the 15-year FRM came in at 3.88%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.28% this week, declining from last week’s rate of 3.39%. Last year, the 5-year ARM averaged 3.9%.

The image below highlights this week’s changes:

Most Popular Articles

Is the coronavirus about to wipe out FHA lending?

It looks like borrowers who don’t fit neatly into Fannie Mae and Freddie Mac’s lending criteria could soon be running out of options if they want to buy a house. Over the last week, many (if not all) of the biggest lenders specializing in lending to borrowers outside the QM lending box paused their activities due to uncertainty in the market. And now it appears that FHA lending as we know it is disappearing from the market too.

Mar 27, 2020 By

Latest Articles

Impac Mortgage suspends lending activity for two weeks

Like many other lenders and companies, Impac is having to navigate the dislocation associated with the interest rate and credit risk mortgage markets. In light of recent events, Impac announced a two week temporary suspension of all lending activity effective March 30.

Mar 30, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please