Mortgage rates just hit lowest level of the year

WASHINGTON — Forecasts for rising mortgage rates remain largely off-mark, with rates falling to the lowest levels of the year this week.

Freddie Mac says a 30-year fixed-rate mortgage averaged 3.86 percent this week, down from 3.89 percent last week. That is the lowest a 30-year rate has been since November of last year.

Mortgage rates have now declined for four consecutive weeks.

While higher than a year ago, it is not by much. A 30-year rate in August 2016 averaged 3.43 percent. The record low was 3.37 percent in late 2012.

“The 10-year Treasury yield fell 6 basis points this week amid concerns over lagging inflation,” said Freddie Mac Chief Economist Sean Becketti.

Mortgage rates are closely tied to 10-year yields.

For buyers who can afford the bigger monthly payment, the average rate on a 15-year fix is now 3.16 percent, actually lower than the 3.17 percent average rate on a five-year adjustable-rate mortgage.

Copyright © 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up