Mortgage Rates Fall to Lowest Level of 2017
Jun 7th, 2017 @ 7:04 PM by Amber Nelson
The average rate on a 30-year fixed rate mortgage (FRM) slipped to 3.94 percent with an average 0.5 point during the week ended June 1, 2017, down from 3.95 percent the week before. The 30-year FRM has rarely been under 4 percent this year and has not been that low since the November 2016 presidential elections. Last year at this time, the average rate was 3.66 percent.
“In a short week following Memorial Day, the 10-year Treasury yield fell 4 basis points,” said Freddie Mac chief economist Sean Becketti. “The 30-year mortgage rate remained relatively flat, falling 1 basis point to 3.94 percent and once again hitting a new 2017 low.”
The 30-year FRM has been falling for the past three weeks, likely a representation of the uncertainty investors feel about the U.S. economy in the wake of President Donald Trump firing FBI Director James Comey and the ensuing political fallout. Comey will testify in a Congressional hearing tomorrow and the content of his testimony may either restore investor confidence and send rates higher or do the opposite and interest rates may stay under 4 percent for some time.
Another factor influencing the lower rates is investor fear brought on by the recent terrorist attacks in London and Paris.
Other rates did not experience the same declining trend. The 15-year FRM averaged 3.19 percent with an average 0.5 point, unchanged from the previous week, but up from 2.92 percent a year ago.
The average rate on a 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) rose to 3.11 percent with an average 0.5 point, up from 3.07 a week earlier. The previous year, the average rate was just 2.88 percent.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.