Mortgage Rates Slump to Lowest Level in Almost 3 Years

Average fixed mortgage rates are now at their lowest level of 2016, with the 30-year home loan at 3.58 percent, according to Freddie Mac.

That’s just one basis point from last week’s rate of 3.59 percent. Nonetheless, it marks the continuation of a favorable trend for the housing market as demand for U.S. Treasury notes remain high, pushing loan rates down.
The 30-year fixed rate has not been at this level since May 2013.
Meanwhile, mortgage applications increased 10 percent last week, from one week earlier, according to data from the Mortgage Bankers Association, a surged fueled in large part by rates remaining well below 4 percent.
“Helped by a persistently strong job market and low rates, applications for both conventional and government home purchase loans increased last week,” said Mike Fratantoni, the MBA’s Chief Economist. “The purchase index was at its second highest level since May 2010.”
The refinance share of mortgage activity increased to 54.9 percent of total applications from 54.5 percent the previous week.
“Demand for Treasuries remained high this week, driving yields to their lowest point since February,” says Sean Becketti, chief economist, Freddie Mac. “In response, the 30-year mortgage rate fell 1 basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013.”
Here is Freddie Mac’s rundown for the week:
30-year fixed-rate mortgage (FRM) averaged 3.58 percent, with an average 0.5 point for the week ending April 14, 2016, down from last week when they averaged 3.59 percent. A year ago at this time, the 30-year FRM averaged 3.67 percent.
15-year FRM this week averaged 2.86 percent, with an average 0.5 point, down from last week when it averaged 2.88 percent. A year ago at this time, the 15-year FRM averaged 2.94 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.4 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.88 percent.

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