Mortgage rates shifted lower for the first time in four weeks during the week ending March 24, with the average 30-year fixed-rate mortgage (FRM) averaging 3.71%, down from the prior week’s 3.73%, according to Freddie Mac’s latest Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.69%.
The average rate for a 15-year FRM was 2.96%, down from last week when it averaged 2.99%. A year ago at this time, the 15-year FRM averaged 2.97%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.89%, down from last week’s 2.93%. A year ago, the five-year ARM averaged 2.92%.
“The Federal Reserve’s decision last week to maintain the current level of the Federal funds rate combined with the reduction in their forecast for growth triggered a three-basis point drop in the 10-year Treasury yield,” says Sean Becketti, chief economist for Freddie Mac.
“As a consequence, the 30-year mortgage rate declined two basis points to 3.71 percent. However, comments this week by several members of the Fed, including the presidents of the Richmond, San Francisco and Atlanta banks, indicated that a June rate hike is still on the table,” Becketti adds.