NEW YORK–In what many had anticipated would be a (slowly) rising rate market, mortgage rates have dropped significantly, with the 30-year fixed-rate mortgage hitting its lowest point since November of 2016.
According to Freddie Mac, last week ended with the 30-year fixed-rate mortgage averaging 3.6%, down 15 basis points from the previous week. Last week marked the third-largest weekly decline for the 30-year fixed-rate mortgage this year — so far in 2019, rates for the loan product have only posted a weekly increase on eight occasions, Freddie Mac reported.
Meanwhile, the 15-year fixed-rate mortgage also declined 15 basis points to an average of 3.05%, according to Freddie Mac. The 5/1 adjustable-rate mortgage averaged 3.36%, representing a decline of 10 basis points, the GSE added.
Mortgage rates track the 10-year Treasury note, the yield on which has fallen sharply over the past year due to tensions over trade and other issues.
‘Tug of War’
“There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment,” Freddie Mac said in a statement accompanying its latest data. “Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.”
While rates continue to decline, its bittersweet for many would-be homeowners. As CUToday.info has reported, there continues to be a shortage of homes, especially for first-time buyers.