The 15-year, fixed-rate mortgage broke the 3% barrier for the first time, falling to 2.97%, while the 30-year FRM set a new all-time record for the fifth straight week.
The Freddie Mac survey showed the 15-year FRM, a popular refinancing choice, averaged 2.97%, breaking the 3% barrier for the first time. Last week, the rate averaged 3.04%. A year ago, it was 3.74%.
The 30-year FRM averaged 3.75% for the week ending Thursday — a record low — ticking down from the prior week’s record average of 3.78%. Last year at this time, the 30-year FRM averaged 4.55%.
Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.84%, up from last week’s 2.83% and down from 3.41% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.75%, unchanged from last week and down from 3.13% last year.
Three of the four benchmark mortgage rates are below 3% for the first time in Freddie’s weekly survey.
“Market concerns over tensions in the eurozone led to a decline in long-term Treasury bond yields helping to bring fixed-mortgage rates to new record lows this week,” said Frank Nothaft, Freddie Mac chief economist.
Compared to a year ago, rates on 30-year FRM are almost 0.9% lower, translating into nearly $1,200 less in annual payments on a $200,000 loan, Nothaft noted.
“The S&P/Case-Shiller 20-city composite home price index (not seasonally adjusted) showed annual home-value gains in March in seven cities and a monthly gain in 12 cities,” Nothaft pointed out.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM fell to 3.94% from 3.97%, while the 15-year FRM fell to 3.15% from 3.19%. The 5/1 ARM ticked down to 3.01% from 3.02%.
jhilley@housingwire.com
