It’s been another good week for prospective homebuyers and mortgage refinancers, as average fixed mortgage rates slipped for the third consecutive week, according to Freddie Mac.
The agency’s weekly survey showed that the average rate on a 30-year, fixed-rate mortgage was 3.66 percent, down from 3.73 percent last week and 4.41 percent a year ago. That puts the average rate on par with its level in mid-May 2013.
Average rates on a 15-year mortgage also slid this week, to 2.98 percent from 3.05 percent last week and 3.45 percent a year ago. It was the first time since May 30, 2013, that the interest rate on that loan product fell below 3 percent.
“Mortgage rates fell for the third consecutive week as oil prices plummeted and long-term Treasury yields continued to drop despite a strong employment report,” said Frank Nothaft, Freddie Mac’s chief economist.
On Wednesday, the Mortgage Bankers Association reported that the volume of mortgage applications for the week ended Jan. 9 increased 49 percent on a seasonally adjusted basis. Applications for mortgage refinancings rose 66 percent from the previous week, to the highest level seen since July 2013.
Average mortgage rates, tallied every week by Freddie Mac, are typically lower than the rates quoted to consumers. Loan-level price adjustments, also known as credit overlays, factor in a borrower’s credit score and the debt-to-equity ratio.
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