Mortgage rates have hit a new low for 2016 according Freddie Mac. This record low for the year matches the low from February 2015. “Low mortgage rates and a positive employment outlook should support a strong housing market in the second quarter of 2016” says Freddie Mac.
- 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.5 point for the week ending April 7, 2016, down from last week when they averaged 3.71 percent. A year ago at this time, the 30-year FRM averaged 3.66 percent.
- 15-year FRM this week averaged 2.88 percent with an average 0.4 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 2.93 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 2.83 percent.
Example: Let’s say you are in the market to purchase a home that costs you roughly $225,000. Your principal and interest payment could be as low as:
- 30 Year Fixed: $1,022
- 15 Year Fixed: $1,541
- 5-Year ARM: $927
With rates this low, of course mortgage applications are up. According to Mortgage Bankers Association, The Market Composite Index, a measure of mortgage loan application volume, increased 2.7 percent on a seasonally adjusted basis from one week earlier. The refinance share of mortgage activity increased to 54.5 percent of total applications from 52.4 percent the previous week.