Mortgage Rates Near 2016 Lows Again

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 05, 2016

After climbing for the last three consecutive weeks, mortgage rates reversed course this week, falling back near the lowest averages of the year.

Mortgage rates had moved up 7 basis points over the past three weeks. However, most of those gains were erased this week, as the 30-year fixed-rate mortgage fell 5 basis points to 3.43 percent, Freddie Mac reports.

“Mortgage rates have been below 3.5 percent every week since June 30,” says Sean Becketti, Freddie Mac’s chief economist. “Borrowers are taking advantage of these low rates by refinancing. The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity up 55 percent since last year."

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 4:

  • 30-year fixed-rate mortgages: averaged 3.43 percent, with an average 0.5 point, dropping from last week’s 3.48 percent average. A year ago, 30-year rates averaged 3.91 percent.
  • 15-year fixed-rate mortgages: averaged 2.74 percent, with an average 0.5 point, falling from last week’s 2.78 percent average. Last year at this time, 15-year rates averaged 3.13 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.73 percent, with an average 0.5 point, falling from last week’s 2.78 percent average. A year ago, 5-year ARMs averaged 2.94 percent.

Source: Freddie Mac