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Rates Drop For Third Week Due to Market Turbulence

by UrbanTurf Staff

Rates Drop For Third Week Due to Market Turbulence: Figure 1

The little time that mortgage rates spent above 4 percent at the end of 2015 seems like a distant memory given what they have been doing in the new year.

On Thursday, Freddie Mac reported that a 30-year fixed-rate mortgage averaged 3.81 percent with an average 0.6 point, an 11 basis point drop from last week. Rates have now dropped for three weeks in a row.

“This drop reflected weak inflation — 0.7 percent CPI inflation for all of 2015 — and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries,” Freddie Mac’s Sean Becketti said in a statement.

While rates are now substantially below 4 percent, they are not as low as they were a year ago. This week in 2015, rates averaged 3.63 percent.

Rates Drop For Third Week Due to Market Turbulence: Figure 2

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/rates_drop_for_third_week_due_to_market_turbulence/10786

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