Mortgage Rates Hover Near Record Lows, Could Decline Further
May 22, 2020
The 30-year fixed-rate mortgage continued to near its lowest average on record. The lowest average on Freddie Mac records dating back to 1971 is 3.23%, which was set the week ending April 30. This week, 30-year fixed-rate mortgages averaged close to that, at 3.24%.
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic,” says Sam Khater, Freddie Mac’s chief economist. “As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago. Going forward, mortgage rates have room to decline as mortgage spreads remain elevated.”
Freddie Mac reports the following national averages with mortgage rates for the week ending May 21:
- 30-year fixed-rate mortgages: averaged 3.24%, with an average 0.7 point, falling from last week’s 3.28% average. Last year at this time, 30-year rates averaged 4.06%.
- 15-year fixed-rate mortgages: averaged 2.70%, with an average 0.7 point, falling from last week’s 2.72% average. A year ago, 15-year rates averaged 3.51%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.17%, with an average 0.4 point, falling slightly from last week’s 3.18% average. A year ago, 5-year ARMs averaged 3.68%.
Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.
Updated: July 31, 2020