The Freddie Mac rate for a 30-year fixed rate mortgage was 3.23% in the week ended April 30, a decline of 10 basis points from the previous week and besting the previous low of 3.29% in the March 5 week. The average for April was 3.30%, a low for the monthly rate. The rate is low enough that it could tempt some buyers into the housing market, but these will have to be buyers with good job security and excellent credit history. I doubt possible homebuyers will be plentiful for the next few months in spite of low rates.
The 15-year fixed rate was down 9 basis points to 2.77% in the week, matching the 2.775 in the April 9 week. The average for April was at 2.80%, the lowest since 2.76% in October 2016.
The rate for a 5/1-year ARM was down 14 basis points to 3.14% in the April 30 week. The average for April was at 3.29%. Consumers are more likely to apply for 15- or 30-year fixed rates in order to avoid future risk of higher rates.
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