http://www.realtor.com/news/fixed-mortgage-rates-lowest-level-year/
Fixed mortgage rates across the United States have eased for a second consecutive week, bringing them to their lowest level since November 2013.
The average rate on a 30-year fixed mortgage dropped to 4.21% from 4.29% last week, according to the latest survey from mortgage buyer Freddie Mac. At this time last year the average was 3.42%.
“Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement. “Meanwhile, the economy added 288,000 jobs in April, the largest since January 2012, and followed an upward revision of 36,000 jobs for the prior two months. Also, the unemployment rate fell to 6.3%.”
The average rate on a 15-year fixed mortgage also registered a slight drop, to 3.32% from 3.38% last week. A year ago, it averaged 2.61%, according to Freddie Mac.
Averages for the two most popular hybrid adjustable-rate mortgages were mixed. At 3.05%, the five-year ARM remained unchanged week-over-week. The one-year ARM trended down slightly, to 2.43% from 2.45% a week ago.
Since hitting record lows about a year ago, mortgage rates have risen almost a full percentage point.
Analysts predict mortgage rates will hold steady over the next week. In the latestMortgage Rate Trend Index, 60% of the panelists polled think rates will remain relatively unchanged.
“If a surprisingly strong jobs report isn’t enough to push rates higher—and rates actually fall—then I’m not sure what will,” said Greg McBride, chief financial analyst with Bankrate.com.
