Mortgage Rates Hit Another All-Time Low

28 May 2020

Mortgage Rates Hit Another All-Time Low

Freddie Mac

Freddie Mac today released the results of its Primary Mortgage Market Survey®, showing that the 30-year fixed-rate mortgage (FRM) averaged 3.15 percent.

“The 30-year fixed-rate mortgage has 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,” said Sam Khater, Freddie Mac’s Chief Economist. “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 mortgage 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.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point for the week ending May 28, 2020, down from last week when it averaged 3.24 percent. A year ago at this time, the 30-year FRM averaged 3.99 percent.
  • 15-year fixed-rate mortgage averaged 2.62 percent with an average 0.7 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.46 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent with an average 0.4 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 5-year ARM averaged 3.60 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.