Interest Rate for 30-Year Mortgage Back in 3% Territory
May 31, 2019
For the first time since January 2018, the 30-year fixed-rate mortgage has dropped below 4%.
“While economic data points to continued strength, financial sentiment is weakening with the spread between the 10-year and the 3-month Treasury bill narrowing as fears of the impact of the trade war with China grow,” says Sam Khater, Freddie Mac’s chief economist. “Lower rates should, however, give a boost to the housing market, which has been on the upswing with both existing- and new-home sales picking up recently.”
Freddie Mac reports the following national mortgage rate averages for the week ending May 30:
- 30-year fixed-rate mortgages: averaged 3.99%, with an average 0.5 point, dropping from last week’s 4.06% average. Last year at this time, 30-year rates averaged 4.56%.
- 15-year fixed-rate mortgages: averaged 3.46%, with an average 0.5 point, dropping from last week’s 3.51% average. A year ago, 15-year rates averaged 4.06%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.60%, with an average 0.4 point, falling from last week’s 3.68% average. A year ago, 5-year ARMs averaged 3.80%.
Updated: July 15, 2020