Mortgage Rates Tick Down as ‘Year Full of Surprises’ Continues
Mortgage rates on average ticked down for the second straight week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), with the average 30-year fixed-rate mortgage posting 4.15 percent with a 0.5 point. The trend, says Freddie Mac Chief Economist Sean Becketti, is off-track from its usual movement.
“For the last 46 years, the 30-year mortgage rate has been almost perfectly correlated with the yield on the 10-year Treasury, but not this year,” Becketti says. “From Dec. 29, 2016, through today, the 30-year mortgage rate fell 17 basis points to this week’s reading of 4.15 percent. In contrast, the 10-year Treasury yield began and ended the same period at 2.49 percent. While we expect mortgage rates to fall into line with Treasury yields shortly, this just may be a year full of surprises.”
The 15-year fixed-rate mortgage posted 3.35 percent with an 0.5 point, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage posted 3.18 percent with an 0.4 point, according to the survey.