The 30-year mortgage rate sinks to 3.33%
Mortgage rates continued to fall as a result of the volatility in the housing market set off by the coronavirus outbreak.
A week after the Fed moved to stabilize the market, the 30-year fixed-rate mortgage (FRM) declined 17 basis points from last week's 3.50% to 3.33%. The 30-year FRM was lower than last year's 4.08% average.
“Mortgage rates have drifted down for two weeks in a row, and that drop reflects improvements in market liquidity and sentiment,” said Sam Khater, chief economist of Freddie Mac. “While the market has stabilized relative to prior weeks, homebuyer demand has declined in response to current economic conditions. The good news is that the pending economic stimulus is on the way and will provide support for both consumers and businesses.”
The rate for the 15-year fixed mortgage went down 10 basis points from 2.92% to 2.82%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) saw a week-over-week increase, up from 3.34% to 3.40%.
The Federal Reserve recently purchased $1 billion worth of commercial mortgage-backed securities, citing the need “to support smooth market functioning” amid the economic crisis caused by the coronavirus.
