As of February 27, Freddie Mac reported mortgage rates down across-the-board. The flight-to-safety that drove down stock prices also brought Treasury yields down as well. As a result, mortgage interest rates retreated a bit as well. These are rates that will keep consumers in the housing market, at least as long as the labor market holds up and risks to the economy are still only potential risks, not immediate ones.
The 30-year fixed rate fell 4 basis points week-over-week to 3.45%, the same as in the February 6 week. The average for February is now at 3.47%, 16 basis points below the 3.62% in January and the lowest since 3.47% in October 2016.
The 15-year fixed rate was also down 4 basis points to 2.95%, its lowest weekly rate since 2.88% as of November 10, 2016. The month average for February to-date is at 2.97%, a 10 basis point drop from 3.07% in January and the lowest monthly rate since 2.76% in October 2016. The rate is low enough that it might prompt a wave of refinancings to lock in a sub-3% rate and pay off the loan more quickly.
The rate for a 5/1-year ARM was down 5 basis points from the prior week to 3.20%, and the lowest since 3.21% in the November 16, 2017 week. The February to-date average is 3.26%. This is somewhat below the 3.33% of January and the lowest since 3.18% in October 2017.
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