For the third consecutive week, the 30-year fixed-rate mortgage averaged a new year-to-date low.
“The 10-year Treasury yield fell 9 basis points this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate followed, dropping 4 basis points to a year-to-date low of 3.78 percent.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 7:
- 30-year fixed-rate mortgages: averaged 3.78 percent, with an average 0.5 point, falling from last week’s previous yearly low of 3.82 percent. Last year at this time, 30-year rates averaged 3.44 percent.
- 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, falling from last week’s 3.12 percent average. A year ago, 15-year rates averaged 2.76 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.15 percent, with an average 0.4 point, rising from last week’s 3.14 percent average. A year ago, 5-year ARMs averaged 2.81 percent.
I get calls often or I’ll get cornered at a public event or party with the same questions from people. How is the real estate market and what are the interest rates for loans? Easy to answer given the fact real estate professionals see the rates daily. Also they can provide interest rate trends and stats like the information mentioned above. One can see the current rates and track the direction the rates are heading. According to the stats interest rates slightly dropped to a years low but are higher than a year ago.
Will they continue to drop or will they rise depends on the the Federal Government. Modern date rates, as a result of the recent housing market crash, have ranged from as low as 2.5% to 4.5%. It doesn’t get much better than that. Many of you readers remember 13.5% in the days of the Ronald Regan Presidency.