Freddie Mac this morning released its weekly update on national mortgage rates, showing continued modest declines in interest rates, nearly across the board.
Both 30-year fixed-rate mortgages, or FRMs, and 15-year FRMs got cheaper over the past seven days, with 30-year FRMs slipping two basis points to 4.12% and 15-year FRMs dropping four basis points to 3.21%. One year ago, 30-year FRMs averaged 3.81% and 15-year fixed-rate mortgages averaged 2.98%.
Five-year adjustable-rate mortgages, or ARMs, held firm at 2.96% in the most recent week. One-year ARMs dropped two basis points to 2.41%. A year ago, five-year ARMs were at 2.66% and one-year ARMs at 2.54%.
Freddie Mac Vice President and Chief Economist Frank Nothaft noted that these numbers mark the fifth-straight week of broadly declining mortgage rates.
This is curious, given that, as Nothaft pointed out in a press release, existing-home sales are up 1.3% and new-home sales rose 6.4% in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months. Ordinarily, the laws of supply and demand would dictate that increased demand for home mortgages would result in increased prices (higher rates) on those mortgages. But for as long as this trend lasts, it’s good news for homebuyers.
ALSO READ: The 10 Best Cities to Flip a Home
Nothaft observed that “as the spring home buying season continues, we see stronger consumer confidence as house prices remain on the rise.”
The lower mortgage rates will help to offset those rises in sticker prices.
Top dividend stocks for the next decade
Big news stories can change every day, but great dividends last much longer. And the smartest investors know how much that adds up to over the long run. That’s why top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.