Declining Mortgage Rates Hover Above 2015 Lows


Mortgage rates moved lower for the sixth consecutive week amid ongoing market volatility, according to Freddie Mac's recently released Primary Mortgage Market Survey® (PMMS®) results, showing the average 30-year fixed is hovering just above its 2015 low of 3.59 percent.

“This week's drop leaves the mortgage rate just 6 basis points above last year's low of 3.59 percent,” says Sean Becketti, chief economist, Freddie Mac. "In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form. The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period. If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing."
 
The 30-year fixed-rate mortgage (FRM) averaged 3.65 percent with an average 0.5 point for the week ending February 11, 2016, down from last week when it averaged 3.72 percent. A year ago at this time, the 30-year FRM averaged 3.69 percent.
 
Additionally, the 15-year FRM this week averaged 2.95 percent with an average 0.5 point, down from 3.01 percent last week. A year ago at this time, the 15-year FRM averaged 2.99 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week with an average 0.4 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 2.97 percent.
 
For more information, visit www.freddiemac.com

FineHomesBrokers.com

Reprinted with permission from RISMedia. ©2016. All rights reserved.

About FineHomesDigest

The Fine Homes Team, Mark Finchem, Associate Broker with Long Realty Company, provides service to buyers, seller and builders where fine homes are concerned. With extensive experience in residential real estate transactions we can help you with the home you'd rather have.
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