Mortgage Rates Continue Holding Pattern

By February 21, 2017News, Uncategorized

Freddie Mac’s most recent Primary Mortgage Market Survey shows average mortgage rates slightly falling for the second consecutive week.

“For the last 46 years, the 30-year mortgage rate has been almost perfectly correlated with the yield on the 10-year Treasury, but not this year,” says Sean Becketti, Freddie Mac’s chief economist. “From Dec. 29, 2016, through today, the 30-year mortgage rate fell 17 basis points to this week’s reading of 4.15 percent. In contrast, the 10-year Treasury yield began and ended the same period at 2.49 percent. While we expect mortgage rates to fall into line with Treasury yields shortly, this just may be a year full of surprises.”

Here, a snapshot of Freddie Mac’s survey findings for the week ending Feb. 16:

  • The 30-year fixed-rate mortgage averaged 4.15 percent, with an average 0.5 point, down from the previous week when it averaged 4.17 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.65 percent.
  • The 15-year fixed-rate mortgage averaged 3.35 percent, with an average 0.5 point, down from the previous week when it averaged 3.39 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.95 percent.
  • The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18 percent, with an average 0.4 point, down from the previous week when it averaged 3.21 percent. A year ago, the five-year adjustable-rate mortgage averaged 2.85 percent.