According to Freddie Mac’s Weekly Primary Mortgage Market Survey, mortgage rates declined for the second straight week, as timid investors fled to the safety of the bond market on fears caused by unrest in the Middle East and spiking oil prices.
The average rate on a thirty year fixed rate mortgage fell from 5.00 percent to 4.95 percent. The 15-year fixed mortgage fell five basis point to 4.22 percent. The rate on a 5/1 ARM declined seven basis points to 3.80 percent.
It is entirely possible that we see further declines in rates next week, as the unrest in the Middle East shows no signs of subsiding, and the price of oil is surging. The yield on 10 year treasuries, which mortgage rates tend to track, has declined significantly over the past few days.
Although the 30 year fixed rate is still significantly higher than its all-time low of 4.17 percent in October, the decline in rates prompted an increase in applications for both mortgage refinancing and home purchases last week. If rates continue to drop, we will likely see this trend continue.
If you’ve been looking to refinance or purchase a home, now may be a good time to consider locking in a low rate. Total Mortgage has some of the lowest rates in the industry, consistently beating the national average. Call us today at 877-868-2509 to speak with one of our licensed loan officers today.
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