Fixed mortgage rates across the United States are lower than at this time last year.
The average rate on a 30-year fixed mortgage dropped to 4.14% from 4.17% last week, according to the latest survey from mortgage buyer Freddie Mac. At this time last year, the average was 4.46%.
“Mortgage rates were down following the release of first quarter real GDP final estimate, which fell at a 2.9 percent annualized rate, a steeper than expected decline and the worst reading since the first quarter of 2009,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.
“Also, the seasonally-adjusted S&P/Case-Shiller 20-city home price index [PDF] was up only 0.2 percent in April from the previous month. On a year-over-year basis, prices remained strong in April up 10.8 percent, but slower than the 12.3 percent in March.”
The average rate on a 15-year fixed mortgage also registered a drop, to 3.22% from 3.30% last week. A year ago, it averaged 3.50%, according to Freddie Mac.
Averages for the two most popular hybrid adjustable-rate mortgages were also down. At 2.98%, the five-year ARM dipped slightly from 3.00% last week. The one-year ARM trended down slightly, to 2.40% from 2.41% a week ago.
After hitting record lows about a year ago, mortgage rates had been on the rise since Fed remarks spurred market speculation it could begin curbing its bond purchases. Last year at this time, rates spiked above 4%.
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