Mortgage Rates Drop, Near 2016 Lows

DAILY REAL ESTATE NEWS | FRIDAY, MAY 06, 2016

Mortgage rates are hovering just above their lowest point of the year, Freddie Mac reports in its weekly mortgage market survey.

"The Fed's decision to stand pat followed by a week of assorted unsettling news drove Treasury yields lower," says Sean Becketti, Freddie Mac's chief economist. "As a consequence, the 30-year mortgage rate drifted down to 3.61 percent, just 3 basis points above the low for the year. Since the start of February, mortgage rates have varied within a narrow range, providing an extended period for house hunters to take advantage of historically low rates."

Freddie Mac reports the following national averages with mortgage rates for the week ending May 5:

• 30-year fixed-rate mortgages: averaged 3.61 percent, with an average 0.6 point, dropping from last week's 3.66 percent average. Last year at this time, 30-year rates averaged 3.80 percent.
• 15-year fixed-rate mortgages: averaged 2.86 percent, with an average 0.5 point, falling from last week's 2.89 percent average. Last year at this time, 15-year fixed-rate mortgages averaged 3.02 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.80 percent, with an average 0.5 point, decreasing from last week's 2.86 percent average. Last year at this time, 5-year ARMs averaged 2.90 percent.

Source: Freddie Mac