Freddie Mac reported fixed rates for mortgage were down sharply as of the June 6 data, and lower for a sixth straight week. Rates for 5/1-year ARMs were down for a second week.
The 30-year fixed rate fell 17 basis points to 3.82% as of June 6, its lowest since 3.78% on September 14, 2017.
The 15-year fixed rate fell 18 basis points to 3.28%, its lowest since 3.24% as of November 9, 2017.
The rate for a 5/1-year ARM was down to 3.52%, the lowest since 3.52% on January 25, 2018.
If homebuyers have been responding to the downward trend in mortgage rates that began in December 2018, this may add some kick to motivating fencesitters. Even with higher prices, the lower rates make owning a home more affordable. Present mortgage rates could also mean a wave of refinancing. With the rate about 100 basis points below the near-term peak of 4.87% in November 2018, the difference in a monthly payment would make it worthwhile.
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