Mortgage Rates Just Hit a New All-Time Low

from Money.com

Those who were holding out on buying or refinancing a mortgage in the hopes of getting even lower rates finally have their patience rewarded. Interest rates have reached a new all-time low for the third time since the beginning of the year.

The average interest rate for a 30-year fixed-rate mortgage was 3.15% with 0.8 points paid, for the week ending May 28, according to Freddie Mac. That’s 0.08 percentage points below the previous all-time low of 3.23% set April 30. A year ago today the average interest rate was 3.99%. It is the fifth consecutive week where interest rates have remained below 3.30%.

Average interest rates on 15-year fixed-rate mortgages fell by 0.8 percentage points to 2.62% with 0.7 points paid. Meanwhile, the average rate on a five-year adjustable-rate mortgage decreased to 3.13% with 0.4 points paid, a decline of 0.4 percentage points from last week’s 3.17%

Refinance loans continue to be in high demand as they make up almost two-thirds of all mortgage loan activity. Conventional refinance loans increased 2% over the previous week thanks to continued low interest rates. More recent refinance activity has also seen a $70,000 decrease in the average amount of refinance loan size. “This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy,” said Sam Khater, Freddie Mac’s chief economist in a statement.

Home purchase mortgage applications continue their six-week rise as lock-downs orders ease throughout the U.S. According to data from the Mortgage Bankers Association (MBA), applications were up 9% over the previous week and 54% over their level in early April. New York continues to lead the way with an increase of 19.7% over last week, while California saw an increase of 11.6%.