The 30-year fixed-rate mortgage remained at 6.76% this week, unchanged from the week before, according to Freddie Mac’s weekly survey of the market. The 15-year rate dipped slightly, down three basis points to 5.89% from 5.92%.
Rates are far lower than a year ago this same time, Sam Khater, Freddie Mac’s chief economist, noted in a statement. And the stability of rates in recent weeks is working in the market’s favor.
“Mortgage rates stayed flat this week,” Khater said. “At this time last year, the 30-year fixed-rate mortgage was 30 basis points higher and purchase applications were declining. Today, rates are lower and have remained stable for weeks, sparking continued increases in purchase applications.”
Last week, mortgage applications saw an unexpected jump, according to the Mortgage Bankers Association (MBA). The association found that both purchases and refinances jumped 11% from the previous week.
MBA’s Chief Economist Mike Fratantoni said the bounce was surprising given the otherwise dour economic news, such as the negative reading for the first time in years on the U.S. gross domestic product and a decline in the manufacturing section.
