The May 30 report on mortgage interest rates put fixed rates down for a fifth straight week.
The 30-year fixed rate was down 7 basis points to 3.99%, the lowest since 3.99% in the January 11, 2018 week. This brings the May average to 4.07%, its lowest monthly rate since 4.03% in January 2018.
The 15-year fixed rate was down 5 basis points to 3.46%, it slowest since 3.44% in the January 11, 2018 week. The average for May was 3.53%, the lowest since 3.48% in January 2018.
The rate for a 5/1-year ARM was down 8 basis points to 3.60%, its lowest since 3.57% in the February 8, 2018 week. The May average of 3.65% is the lowest since 3.65% in March 2018.
The fact that the 30-year fixed rate has broken below 4% should provide an incentive for potential homebuyers to enter the market now, and could spark a wave of refinancing among some recent home purchasers back in October and November since the difference in rates is enough to warrant refinancing.
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.