Rates have dropped more than 70 basis points in the past year, lowering monthly payments by about $160.
Mortgage rates ticked up this week but still remain under a 3% average and near historical lows. Freddie Mac reported the 30-year fixed-rate mortgage averaged 2.90% this week. The all-time low for rates was set in mid-September, averaging 2.86%.
Home buyers are seeing how record-low rates can significantly decrease their borrowing costs. Compared to a year earlier, mortgage rates have dropped more than 70 basis points. That has brought monthly payments on a $400,000 loan down by nearly $160, according to the National Association of REALTORS®. “With these ultra-low mortgage rates, homebuying activity is expected to remain strong in the fall,” NAR reports.
Freddie Mac reports the following national averages for mortgage rates for the week ending Sept. 24:
- 30-year fixed-rate mortgages: Averaged 2.90%, with an average 0.8 point, rising from last week’s 2.87% average. A year ago, 30-year rates averaged 3.64%.
- 15-year fixed-rate mortgages: Averaged 2.40%, with an average 0.7 point, increasing from last week’s 2.35% average. A year ago, 15-year rates averaged 3.16%.
- 5-year hybrid adjustable-rate mortgages: Averaged 2.90%, with an average 0.2 point, falling from last week’s 2.96% average. A year ago, five-year ARMs averaged 3.38%.
Freddie Mac reports average points to reflect the total upfront cost of obtaining the mortgage.
Source: Freddie Mac