Freddie Mac: Mortgage Rates Continue To Fall

Posted by Patrick Barnard on February 11, 2016 No Comments
Categories : Residential Mortgage

Mortgage rates continued to trend downward during the week ended Feb. 11, according to Freddie Mac’s Primary Mortgage Market Survey.

It was the sixth consecutive week that mortgage rates decreased – this despite ongoing market volatility.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.65%, down from 3.72% the previous week. A year ago at this time, the 30-year FRM averaged 3.69%.

The average rate for a 15-year FRM was 2.95%, down from 3.01%. A year ago at this time, the 15-year FRM averaged 2.99%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.83%, down from 2.85% the previous week. A year ago, the five-year ARM averaged 2.97%.

“The 30-year mortgage rate dropped another seven basis points this week to 3.65 percent,” says Sean Becketti, chief economist for Freddie Mac, in a release. “This week’s drop leaves the mortgage rate just 6 basis points above last year’s low of 3.59 percent.”

“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,” Becketti adds. “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.”

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