The Freddie Mac fixed rates for mortgages were down for a second week in a row as of the May 9 data. The 5/1-year ARM rate was down for a fourth straight week.
The 30-year fixed rate was 4.10% on May 8, down 4 basis points from the 4.14% in the prior week and the lowest since 4.08% in the April 4 week. The average for May to-date is 4.12%, the lowest month rate since 4.03% in January 2018.
The 15-year fixed rate was 3.57% in the week, down 3 basis points from 3.60% in the prior week and the lowest since 3.57% in the April 4 week. The monthly average for May to-date is 3.59%, the lowest since 3.48% in January 2018.
The 5/1-year ARM rate was 3.63% as of May 8, down 5 basis points from the prior week and the lowest since 3.61% in the April 12, 2018 week. The month-to-date average for May is 3.66%, the lowest since 3.66% in April 2018.
Consumers will find these sorts of rates make homebuying more affordable at the moment in spite of rising prices due to improved incomes. The spring home shopping season is likely to benefit, although inventories of affordable homes may be limited.
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