How Low Will Mortgage Rates Go?

Freddie Mac reports that for the sixth consecutive week, mortgage rates were on a downward move as the 30-year fixed-rate mortgage nears  its 2015-low of 3.59%. 

“The 30-year mortgage rate dropped another 7 basis points this week to 3.65 percent,” says Sean Becketti, Freddie Mac’s chief economist. “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. 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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Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 11:

  • 30-year fixed-rate mortgages: averaged 3.65%, with an average 0.5 point, dropping from last week’s 3.72% average. Last year at this time, 30-year rates averaged 3.69%.
  • 15-year fixed-rate mortgages: averaged 2.95%, with an average 0.5 point, falling from 3.01% last week. A year ago, 15-year rates averaged 2.99%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.83%, with an average 0.4 point, dropping from last week’s 2.85% average. A year ago, 5-year ARMs averaged 2.97%.

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