Following lower bond yields, the 15-year fixed fell below 3 percent, while
the 30-year fixed set a new record-low as well, according to Freddie Macâ€™s Primary
Mortgage Market Survey.
The 30-year fixed-rate mortgage dropped to 3.75 percent (0.8 point) for the
week ending May 31. Last week, it averaged 3.78 percent, and last year, it was
The 15-year fixed slid into new territory, averaging 2.97 percent (0.7
point), down from 3.04 percent. A year ago at this time, the 15-year fixed
stood at 3.74 percent.
The 5-year ARM averaged 2.84 percent (0.6 point), up
from last weekâ€™s average of 2.83 percent. A year ago, the 5-year ARM averaged 3.41 percent.
The 1-year ARM remained unchanged from last week at
2.75 percent (0.4 point). The previous year, it averaged 3.13 percent.
Frank Nothaft, VP and chief economist for Freddie Mac, pointed to market
concerns over the Eurozone, which led to a decline in long-term Treasury bond
yields, as one reason for the drop in fixed rates.
â€œCompared to a year ago, rates on 30-year fixed mortgage rates are almost
0.9 percentage points lower which translates into nearly $1,200 less in annual
payments on a $200,000 loan,â€ said Nothaft.
reported record-lows for fixed rates.
The 30-year fixed dropped to a new low of 3.94 percent, down from 3.97
percent last week. The 15-year fixed averaged 3.15 percent, also a record low.
Last week, it was 3.19 percent.
The 5-year ARM slipped from 3.02 percent last week
to 3.01 percent this week.
Bankrateâ€™s national weekly mortgage survey includes data from the top 10
banks and thrifts in the top 10 markets.
Real Estate Consultant
Burleson, TX 76028