Borrowing costs fell this week, with the 30-year fixed-rate mortgage setting a new record low for the third time in the last few months. The 30-year fixed-rate mortgage averaged 3.15% this week, the lowest average in Freddie Mac’s records dating back nearly 50 years.
“These unprecedented rates have certainly made an impact, as purchase demand rebounded from a 35% year-over-year decline in mid-April to an 8% increase of last week—a remarkable turnaround given the sharp contraction in economic activity,” says Sam Khater, Freddie Mac’s chief economist. “Additionally, refinance activity remains elevated, and low mortgage rates have been accompanied by a $70,000 decline in average loan size of refinance borrowers this year. This means a broader base of borrowers are taking advantage of the record-low rate environment, which will benefit the economy.”
Freddie Mac reported the following national averages with mortgage rates for the week ending May 28:
- 30-year fixed-rate mortgages: averaged 3.15%, with an average 0.8 point, falling from last week’s 3.24% average. Last year at this time, 30-year rates averaged 3.99%.
- 15-year fixed-rate mortgages: averaged 2.62%, with an average 0.7 point, falling from last week’s 2.70% average. A year ago, 15-year rates averaged 3.46%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.13%, with an average 0.4 point, falling from last week’s 3.17% average. A year ago, 5-year ARMs average 3.60%.
Freddie Mac reports average commitment rates along with fees and points to reflect the total upfront cost of obtaining a mortgage.
Source: Freddie Mac