Record Lows Again

June 2, 2020
Low Rates
Rates hit record lows again last week.

 

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 do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Current Indices for Adjustable Rate Mortgages
Updated May 29, 2020

 

Daily Value

Monthly Value

 

May 28

April

6-month Treasury Security

0.18%

0.17%

1-year Treasury Security

0.17%

0.18%

3-year Treasury Security

0.22%

0.28%

5-year Treasury Security

0.34%

0.39%

10-year Treasury Security

0.70%

0.66%

12-month LIBOR

 

0.836% (Apr)

12-month MTA

 

1.504% (Apr)

11th District Cost of Funds

 

0.884% (Mar)

Prime Rate

 

3.25% (March)