Fourth Week in Row, 30-Year Rates Reach Records
Home buying got even more affordable this week as mortgage rates continue to ride low, breaking records, and increase home buyer affordability.
For the fourth consecutive week, 30-year fixed-rate mortgages, the most popular choice of borrowers, reached a new all-time low while 15-year fixed-rate mortgages held steady at its all-time low set last week, according to Freddie Mac’s weekly mortgage market survey.
"Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive home buyer affordability,” Frank Nothaft, Freddie Mac’s chief economist.
Indeed, housing affordability reached an all-time record high in the first quarter, according to the National Association of REALTORS®’ Housing Affordability Index.
Here’s a closer look at how mortgage rates fared for the week ending May 24, according to Freddie Mac:
30-year fixed-rate mortgages: averaged a new record of 3.78 percent, with an average 0.8 point, dropping from last week’s previous record low of 3.79 percent. A year ago at this time, 30-year rates averaged 4.60 percent.
15-year fixed-rate mortgages: averaged 3.04 percent, with an average 0.7 point, holding steady at the record low it set last week. Last year at this time, 15-year rates averaged 3.78 percent.
5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.6 point, also unchanged from last week’s average. Last year at this time, 5-year ARMs averaged 3.41 percent.
1-year ARMs: averaged 2.75 percent, with an average 0.4 point, dropping from last week’s 2.78 percent average. A year ago, 1-year ARMs averaged 3.11 percent.
Source: Freddie Mac