In the data released for March 28, Freddie Mac reported sharp declines in mortgage rates. After a drip-drip lower in recent weeks, the fixed rate for a 30-year mortgage was down 22 basis points to 4.06% and the lowest since 4.04% in the January 18, 2018 week. The 15-year was down 14 basis points to 3.57%, also the lowest since the January 18, 2018 week at 3.49%. The 5/1-year ARM rate was down 9 basis points to 3.75%, its lowest since 3.74% in the July 5, 2018 week.
The month-to-date average for the 30-year fixed was down to 4.27%, the lowest since 4.03% in January 2018. The 15-year rate averaged 3.72% for March, the lowest since 3.48 in January 2018. The 5/1 ARM rate averaged 3.83%, the lowest since 3.82% in June 2018.
Similar low rates in 2017 and early 2018 helped spur activity in the housing market with brisk sales and fresh construction to meet demand. The recent declines in mortgage rates after the near-term peaks in October-November 2018 have helped improve activity after rising rates drove some buyers out of the market. This spring may seen a resurgence.
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