Mortgage Rates Back Under 4 Percent for First Time Since Election
Mortgage rates moved back under 4 percent for the first time since the presidential election, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year and 30-year fixed mortgage rates both toppled 11 basis points, with the 15-year at 3.23 percent and the 30-year at 3.97 percent. The average 5-year, Treasury-indexed hybrid adjustable mortgage rate is 3.10 percent.
“The 30-year mortgage rate fell 11 basis points this week to 3.97 percent, dropping below the psychologically-important 4 percent level for the first time since November,” explains Sean Becketti, chief economist at Freddie Mac. “Weak economic data and growing international tensions are driving investors out of riskier sectors and into Treasury securities. This shift in investment sentiment has propelled rates lower.”
Mortgage rates surged above 4 percent in the weeks following the election, fueled further by the Federal Reserve’s decision to raise the key interest rate in December. Rates relaxed at the turn of the new year, and have teetered slightly up and down since.