Freddie Mac reported mortgage interest rates down again in the week as of May 21. The weekly 30-year fixed rate for a mortgage was down 4 basis points and hit a new record low of 3.24%, bringing the average for May to-date to 3.26%, the series low for monthly data. Those buyers who are able to get a conventional mortgage right now will be out shopping for a home to capture the best possible affordability, which will include hard bargaining on price.
The 15-year fixed rate was down 2 basis points to 2.70% in the week, with an average of 2.72% for May to-date compared to 2.80% in April. There may be less refinancing going on right now due to economic conditions and a previous wave of refinancings when rates where on the decline in the second half of 2019. However, for those who can secure a refinancing, this may be an attractive opportunity with the 15-year rate at its lowest monthly level since 2.72% in May 2013.
The rate for a 5/1-year ARM was down 1 basis point to 3.17% as of May 21, the same as the average for May to-date. While most consumers will want to lock in a fixed rate that is not appreciably higher than those for ARMs, there may be some buyers who find this an attractive alternative.
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