According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 3.61 percent for the week ending May 5, 2016, with an average 0.6 point. The 15-year fixed improved as well, landing at 2.86 percent, 3 basis points lower than last week’s 2.89 percent. The 30-year fixed-rate mortgage (FRM) averaged 3.61 percent for the week ending May 5, down from last week when it averaged 3.66 percent.
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Freddie Mac said in its Primary Mortgage Market Survey released Thursday that average fixed mortgage rates fell following the Federal Reserve’s decision last week to not raise short-term interest rates. A year ago, the 5-year ARM averaged 2.90 percent.
That means low levels for the bonds’ yields, which move in the opposite direction from their prices and tend to influence mortgage rates. “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”.
The MBA reported that the Refinance Index declined 6 percent from the previous week.
The Market Composite Index, a measure of mortgage loan application volume, decreased 3.4 percent on a seasonally adjusted basis from one week earlier. 30 year FHA loan interest rates at the bank are available starting at 3.300% with a bit higher April of 4.4619%.
The refinance share of mortgage activity accounted for 52.9 percent of all applications. The MCAI decreased 0.89 percent to 122.4 last month.
In addition, a 15-year, high-balance fixed-rate loan for $417,000 to $625,500 is available at 3.125 percent and zero cost, and a 30-year high-balance fixed is available at 3.875 percent and zero cost.
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“Investors continued to roll out Fannie Mae and Freddie Mac’s low down payment loan programs, which had a loosening effect on credit availability”.
