ABBA First Mortgage News

“Stable improving rates” – A well defined oxymoron now-a-days in the mortgage industry.

For the week ending May 28, Freddie Mac announced that 30-year fixed rates moved down to 3.15% from 3.24% the week before. The average for 15-year loans decreased to 2.62% and the average for five-year ARMs fell to 3.13%. A year ago, 30-year fixed rates averaged 3.99%, more than 0.75% higher than today. “Thirty year fixed-rate loans have again hit the lowest level in our survey’s nearly 50-year history, breaking the record for the third time in just the last few months. These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week—a remarkable turnaround given the sharp contraction in economic activity. Additionally, refinance activity remains elevated and low interest rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year. This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy,” said Sam Khater, Chief Economist, Freddie Mac.

Note: Rates indicated may include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

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