The 30-year fixed-rate mortgage averaged 3.13% this week, a welcome drop for many home buyers who may be closely watching the rising borrowing costs over the last few weeks.
“After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields,” said Sam Khater, Freddie Mac’s chief economist. “As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility.”
Housing also likely will get a boost from the recovering job market. The job market added nearly 1 million jobs in March, marking the fastest acceleration since August of last year, Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes for the association’s Economists’ Outlook blog. “As more people re-enter the workplace, the demand for housing is expected to increase as Americans set their sights on homeownership and mortgage rates remain historically low,” Evangelou said.
Freddie Mac reports the following national mortgage rates for the week ending April 8:
- 30-year fixed-rate mortgages: averaged 3.13%, with an average 0.7 point, dropping from last week’s 3.18% average. Last year at this time, 30-year rates averaged 3.33%.
- 15-year fixed-rate mortgages: averaged 2.42%, with an average 0.6 point, falling from last week’s 2.45% average. A year ago, 15-year rates averaged 2.77%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.92%, with an average 0.1 point, rising from last week’s 2.84% average. A year ago, 5-year ARMs averaged 3.40%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.