Here’s welcome news for home shoppers: Borrowing costs got cheaper this week. Mortgage rates are back under 3% for the first time in weeks.
The 30-year fixed-rate mortgage averaged 2.97% this week, Freddie Mac reports.
The drop in rates this week followed a downward trend for the 10-year Treasury yield, which rates closely follow. The economy is gaining momentum, however, and consumers can expect mortgage rates to rise in the upcoming months, Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes at the association’s Economists’ Outlook blog.
For now, the drop in mortgage rates is good news for home buyers and homeowners, too, said Sam Khater, Freddie Mac’s chief economist. “Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market,” Khater said. “Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position.”
Freddie Mac reports the following national averages with mortgage rates for the week ending April 22:
- 30-year fixed-rate mortgages: averaged 2.97%, with an average 0.7 point, falling from last week’s 3.04% average. Last year at this time, 30-year rates averaged 3.33%.
- 15-year fixed-rate mortgages: averaged 2.29%, with an average 0.6 point, dropping from last week’s 2.35% average. A year ago, 15-year rates averaged 2.86%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.83%, with an average 0.3 point, rising from last week’s 2.80% average. A year ago, 5-year ARMs averaged 3.28%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.