Real Estate News

New yearly low for mortgage rates

Published: 14 Apr 2017

The most recent figures have shown record lows for 2017 mortgage rates, according to data from Freddie Mac. The company explained the trend in a press release on April 13, in which it announced the latest 30-year fixed-rate mortgage level of 4.08 percent. Similarly, 15-year fixed rate mortgages and five-year ARMs also trended downward, according to Freddie Mac's own Primary Mortgage Market Survey.

For all three measures, the big turn seems to have come last November, when rates started to shift direction. In the accompanying press release, Freddie Mac Chief Economist Sean Becketti put the new findings into context, referencing the major patterns seen throughout the year.

"Following a weak March jobs report, the 10-year Treasury yield dropped about 5 basis points," he said. "The 30-year mortgage rate fell 2 basis points to 4.08 percent. Not only did the average 30-year fixed-rate mortgage decline for the fourth consecutive week in our survey, it also fell to a new 2017 low."

As is often the case, the story could be slightly different between states, as local rates follow their own paths, even if they react to the national figures some how.

Zillow Mortgages reported that some locations like the populous California, saw no rate changes at all in the week between April 4 and 11, while other states, such as Colorado and Washington, saw rate raises as high as 3 basis points. Without a definitive picture of what this will do to the market, home buyers could feel like they have to watch both the national and local rates to make the most cost-effective decision.

Forbes contributor Mark Greene said that lower taxes could also lead to more mortgage activity, saying that "all signs point to a rising tide" when it comes to the home-buying economy.