Mortgage rates dropped to their lowest point in three years this week, as a 30-year fixed loan fell to 3.57%, according to Freddie Mac.
Last week, a 30-year fixed-rate mortgage (FRM) averaged 3.61% and a year ago at this time it averaged 3.85%. Prospective home buyers will continue to take advantage of a falling rate environment that has seen mortgage rates drop in 14 of the previous 19 weeks.
The reason for the low rate could be disappointing April employment data that once again kept a lid on Treasury yields, which have struggled to stay above 1.8% since late March.
·Fifteen-year FRM this week averaged 2.81% with an average 0.5 point, down from last week when it averaged 2.86%. A year ago at this time, the 15-year FRM averaged 3.07%.
·Five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78% this week with an average 0.5 point, down from last week when it averaged 2.80%. A year ago, the 5-year ARM averaged 2.89%.
Source: BuilderOnline.com and FreddieMac.com