According to Freddie Mac's latest Primary Mortgage Market Survey, the average mortgage rate in the U.S. dropped for the second consecutive week.
Sean Becketti, chief economist of Freddie Mac said, "The 10-year Treasury yield remained relatively flat this week. The 30-year mortgage rate fell 9 basis points to 4.14 percent, another significant week-over-week decline. Despite recent mortgage rate fluctuation, new home sales far exceeded expectations in February and jumped 6.1 percent to an annualized rate of 592,000."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.14 percent with an average 0.5 point for the week ending March 30, 2017, down from last week when it averaged 4.23 percent. A year ago at this time, the 30-year FRM averaged 3.71 percent.
15-year FRM this week averaged 3.39 percent with an average 0.4 point, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18 percent this week with an average 0.4 point, down from last week when it averaged 3.24 percent. A year ago, the 5-year ARM averaged 2.90 percent.
According to the National Association of Realtors, after starting the year at the fastest pace in almost a decade, existing-home sales slid in February 2017, but remained above year ago levels both nationally and in all major regions.
On the heels of yesterday's decision by the Federal Reserve to raise short-term interest rates by 25-basis points, yet while expected, many in the real estate industry around the world still took notice.
The NAHB is reporting this week that U.S. home builder confidence in the market for newly-built single-family homes jumped six points to a level of 71 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).