Falling oil prices and dropping yields on long-term Treasuries are helping push down mortgage rates even further, with the 30-year fixed rate down to 3.66 percent this week, its lowest level since the week ending May 23, 2013, says Freddie Mac.
Positive news from the employment front is not having an impact to the upside on rates, which creates more opportunities for prospective homebuyers and current homeowners who want to refinance after re-gaining lost equity over the last couple of years.
Also this week, the 15-year fixed rate mortgage has fallen below 3 percent since the week ending May 30, 2013. Earlier in the week, the Mortgage Bankers Association reported reported that mortgage applications for purchases and refinancing recorded a big 49 percent surge last week.
“Mortgage rates fell for the third consecutive week as oil prices plummeted and long term treasury yields continued to drop despite a strong employment report,” Frank Nothaft, vice president and chief economist, Freddie Mac. “The economy exceeded expectations by adding 252,000 jobs in December which followed an upward revision of 50,000 jobs to the prior two months. The unemployment rate fell to 5.6 percent which was the lowest since June 2008.”
Here is Freddie Mac’s overview of mortgage rates for this week:
30-year fixed-rate mortgage (FRM) averaged 3.66 percent, with an average 0.6 point for the week ending January 15, 2014, down from last week when it averaged 3.73 percent. A year ago at this time, the 30-year FRM averaged 4.41 percent.
15-year FRM this week averaged 2.98 percent, with an average 0.5 point, down from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.45 percent.
15-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week, with an average 0.4 point, down from last week when it averaged 2.98 percent. A year ago, the 5-year ARM averaged 3.10 percent.
1-year Treasury-indexed ARM averaged 2.37 percent this week, with an average 0.4 point, down from last week when it averaged 2.39 percent. At this time last year, the 1-year ARM averaged 2.56 percent.