Could mortgage rates be sliding toward their all-time lows not seen since 2012? Mortgage rates have slipped for two weeks in the wake of the Federal Reserve’s no-action of holding off on further rate increases and uncertainty over the U.K.’s Euro move.
The 30-year fixed-rate mortgage this past week averaged 3.54 percent, its lowest point since it reached 3.51 percent in the week of May 16, 2013, according to Freddie Mac’s weekly updates. The all-time low for the 30-year fixed was reached six months prior to that, in the week of Nov. 21, 2012 when the long-term rate hit 3.31 percent.
Sean Becketti, chief economist, Freddie Mac, says the biggest factor pushing down rates was a flock to bonds by investors anticipating a rate increase by the Fed’s policymakers. But the Fed decided to hold off, partly because of a disappointing jobs report for last month and the uncertainty over Britain’s exist from the European community.
“The 30-year mortgage rate responded by falling 6 basis points for the second straight week to 3.54 percent — yet another low for 2016,” said Becketti. “Wednesday’s Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.’s upcoming European Union referendum will make it difficult for Treasury yields and — more importantly — mortgage rates to substantially rise in the upcoming weeks.”
Here is a rundown of mortgage rates for the past week from Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 3.54 percent, with an average 0.5 point for the week ending June 16, 2016, down from last week when it averaged 3.60 percent. A year ago at this time, the 30-year FRM averaged 4.00 percent.
15-year FRM this week averaged 2.81 percent, with an average 0.5 point, down from last week when it averaged 2.87 percent. A year ago at this time, the 15-year FRM averaged 3.23 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week, with an average 0.5 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.00.