Mortgage Rates Drop Again

Dated: 02/05/2016

Views: 129

Mortgage Rates Drop Again...

Mortgage rates lower for the fifth week in a row, confounding the experts, and are now at their lowest level since late April 2015. Meanwhile, a couple of reports are noting two years as an important touchstone for potential homebuyers.

Freddie Mac’s just-released weekly survey of lenders shows the following average rates for the most popular home loan terms:

  • 30-year fixed-rate mortgages averaged 3.72% with an average 0.6 point for the week ending Feb. 4, 2016.  A year ago, the rate averaged 3.59%.

  • 15-year fixed rates averaged 3.01% with an average 0.5 point. The same term priced at 2.92% a year ago.

  • 5-year adjustable-rate mortgages priced at 2.85% with an average 0.4 point. Last year at this time, the same ARM averaged 2.82%.

  • “Market volatility — and the associated flight to quality — continued unabated this week,” Sean Becketti, chief economist for Freddie Mac, said in a release. “Both the Treasury yield and the mortgage rate now are in the neighborhood of early-2015 lows. These declines are not what the market anticipated when the Fed raised the Federal funds rate in December. For now, though, sub-4% mortgage rates are providing a longer-than-expected opportunity for mortgage borrowers to refinance.”

    Mortgage applications sagged 2.6% for the week ending Jan. 29 from the week prior, according to the Mortgage Bankers Association weekly report. The results reflected an adjustment for the Martin Luther King holiday.

    Purchase applications were down 7%, as refinancing applications rose incrementally, 0.3%. Overall, home purchase loan applications remain 17% higher than the same week one year ago.

Image title

Want to Advertise on this Site?

Latest Blog Posts

The Right Way To Find Out How Much Your Home Is Worth

Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. Smart sellers know that crunching the numbers is always the better

Read More

5 Surprising And Useful Ways To Save For A Down Payment

One of the biggest misconceptions of home buying? The 20% down payment. Here’s how to buy with a lot less down.Buying your first home conjures up all kinds of warm and fuzzy emotions: pride, joy,

Read More

Organize Your Home By Feb 1 In Less Than An Hour A Day

Did you ever notice that your self-improvement pacts with yourself are action oriented? Walk 10,000 steps a day. Fix that leaky faucet. Register for VolunteerMatch.But “get organized”? It’s a

Read More

12 Delightful Ways To Make Your House Brighter In Winter

Fall and winter start cozy — who hasn’t used the colder temperatures as an excuse to binge-watch Netflix while swaddled in a couch blanket?But come January, staying indoors can feel

Read More