Mortgage rates dropped for the third consecutive week, inching closer to the lowest averages ever on record. “Refinance activity remains high, but home purchase demand is weak due to economic tightening,” says Sam Khater, Freddie Mac’s chief economist. “While new monthly economic data are driving markets lower this week, they are a lagging indicator and should be priced in already. Real-time daily economic activity metrics suggest that the economy will likely not decline much further. Going forward, the key question is no longer the depth of economic contraction but the duration.”
Freddie Mac reports the following averages with mortgage rates nationwide for the week ending April 16:
- 30-year fixed-rate mortgages: averaged 3.31%, with an average 0.7 point, falling from last week’s 3.33% average. Last year at this time, 30-year rates averaged 4.17%.
- 15-year fixed-rate mortgages: averaged 2.80%, with an average 0.7 point, rising from last week’s 2.77% average. A year ago, 15-year rates averaged 3.62%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.34%, with an average 0.3 point, dropping from last week’s 3.40% average. A year ago, 5-year ARMs averaged 3.78%.
Average commitment rates are reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.