The Freddie Mac report on mortgage interest rates put the 30-year fixed rate at 4.08%, a scant 2 basis points above the 4.06% in the March 28 data. This was the lowest since the 4.04% in the January 18, 2018 week. The 15-year fixed rate nudged down 1 basis point to 3.56%. This was its lowest since 3.49%, also in the January 18, 2018 week. The 5/1-year ARM rate was down 9 basis points to 3.66%, the lowest since 3.61% in the April 12, 2018 week.
It is possible that rates this low will spark some refinancing activity with fixed rates a full 86 basis points below the near-term peak of 4.94% in the November 15, 2018 week. The drop is sufficient to make a meaningful difference in monthly mortgage payments. In any case, the level should help home sales in the spring months as consumers move to lock in a low rate while it is available.
Disclaimer: Whetstone Analysis provides commentary as a service to its subscribers. Whetstone Analysis is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated and every effort is made to ensure its accuracy, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date. Click here to read our full Disclaimer.