The 30-year fixed-rate mortgage (FRM) rate dropped for the sixth consecutive weekly decline and hit its lowest level since September 2017, according to Freddie Mac.
The 30-year FRM averaged 3.82 percent for the week ending June 6, down from last week when it averaged 3.99 percent. The 15-year FRM averaged 3.28 percent, down from last week when it averaged 3.46 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent, down from last week when it averaged 3.60 percent. A year ago at this time, the five-year ARM averaged 3.74 percent.
“While the drop in mortgage rates is a good opportunity for consumers to save on their mortgage payment, our research indicates that there can be a wide dispersion among mortgage rate offers,” said Sam Khater, Freddie Mac’s chief economist. “By shopping around and getting a single additional mortgage rate quote, a borrower can save an average of $1,500. These low rates are also good news for current homeowners. With rates dipping below four percent, there are over $2 trillion of outstanding conforming conventional mortgages eligible to be refinanced–meaning the majority of what was originated in 2018 is now eligible.”