Average Rate for 30-Year Mortgages Falls Below 4%
2015-04-21
It was the fourth straight week of declines for mortgage rates, making it more affordable to borrow to buy a home. Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year loan fell to 3.97 percent from 4.12 percent last week, hitting its lowest level since June 2013. The average for a 15-year mortgage, a popular choice for people who are refinancing, fell to 3.18 percent from 3.30 percent.
Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.13 percent Wednesday, down from 2.34 percent a week earlier. It traded at 2.11 percent Thursday morning. Treasury yields have dropped sharply on expectations that the world's economic sluggishness could force the Federal Reserve to delay interest rate increases.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
1. The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year mortgage also remained at 0.5 point.
2.The average rate on a five-year adjustable-rate mortgage dropped to 2.92 percent from 3.05 percent. The fee was steady at 0.5 point.
3. For a one-year ARM, the average rate fell to 2.38 percent from 2.42 percent. The fee held at 0.4 point.
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