The 30-year FRM posted significant drop from last week
The 30-year fixed-rate mortgage hit 3.29% Thursday – the lowest interest rate Freddie Mac has recorded since 1971.
Freddie's Primary Mortgage Market Survey revealed that the 30-year FRM plunged from last week's 3.45% and was lower than last year's 4.41% average.
"The average 30-year fixed-rate mortgage hit a record 3.29% this week, the lowest level in its nearly 50-year history. Meanwhile, mortgage applications increased 10% last week from one year ago and showed no signs of slowing down," said Freddie Mac Chief Economist Sam Khater.
The 15-year fixed-rate mortgage also fell from the previous week's 2.95% to 2.79% this week. At this time in 2019, the 15-year FRM averaged 3.83%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped two basis points from 3.20% to 3.18%. A year ago at this time, the 5-year ARM was 3.87%.
"Given these strong indicators in rates and sales, as well as recent increases in new construction, it's clear the housing market continues to be a positive force for the broader economy," Khater said.
