Mortgage Rates Revert to Near 2016 Low

Mortgage Rates Revert to Near 2016 Low Treasury yields fell for the week ending Aug. 4 following the Federal Open Market Committee’s meeting and a disappointing advance estimate for second-quarter gross domestic product. According to the most recent Freddie Mac Primary Mortgage Market Survey, mortgage rates—which had increased 7 basis points during the previous three weeks— responded by erasing most of those gains, falling 5 basis points to 3.43 percent for the 30-year fixed-rate mortgage.

Mortgage rates have dipped below 3.5 percent each week since June 30. Borrowers are taking advantage of these low rates by refinancing, with the Mortgage Bankers Association’s latest Weekly Applications Survey results showing refinance activity up 55 percent since last year.

Freddie Mac findings:

• The 30-year fixed-rate mortgage averaged 3.43 percent, with an average 0.5 point for the week ending Aug. 4, down from the previous week’s average of 3.48 percent. A year ago at the same time, the 30-year fixed-rate mortgage averaged 3.91 percent.

• The 15-year fixed-rate mortgage averaged 2.74percent, with an average 0.5 point, down from the previous week’s average of 2.78 percent. A year ago at the same time, the 15-year fixed-rate mortgage averaged 3.13 percent.

• The five-year Treasury-indexed hybrid adjustable- rate mortgage averaged 2.73 percent, with an average 0.5 point, down from the previous week’s average of 2.78 percent. A year ago at the same time, the five-year adjustable-rate mortgage averaged 2.94 percent.

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