The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.22 percent from 3.28 percent.
Advertisement
Mortgage interest rates are now at the lowest level since late April 2015.
Borrowing costs are declining as turbulent global markets drive investors to the safety of US government bonds.
Through Wednesday, the 30-year fixed rate averaged 3.72 percent, down seven basis points and the lowest point since April 30, Freddie reported. The yield on the 10-year Treasury dropped another 15 basis points, and the 30-year mortgage rate fell 7 basis points as well, to 3.72 percent. A strong employment report this Friday may halt the declining trend, but anything less than a stellar report will only further feed concerns about a slowdown. FHA, 15-year no-cost is an incredible 2.875 percent and the 30-year is 3.375 percent.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. Just 23 percent expect mortgage rates to rise in the coming week. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes.
“These declines are not what the market anticipated when the Fed raised the Federal Funds rate in December”, Freddie’s chief economist, Sean Becketti, noted in a statement.
“Both the Treasury yield and the mortgage rate now are in the neighborhood of early-2015 lows”, said Becketti.
Advertisement
The refinance share of mortgage activity increased to 59.2 percent of total applications from 59.0 percent the previous week. The interest rate does not include fees associated with your loan.
