How Low Will Mortgage Rates Go?


For the sixth consecutive week, mortgage rates were on a downward spiral as the 30-year fixed-rate mortgage hovers near its 2015-low of 3.59 percent, Freddie Mac reports.

The 30-year mortgage rate dropped another 7 basis points this week to 3.65 percent, says Sean Becketti, Freddie Macs chief economist. This weeks drop leaves the mortgage rate just 6 basis points above last years low of 3.59 percent. In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form. The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period.If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 11:

  • 30-year fixed-rate mortgages: averaged 3.65 percent, with an average 0.5 point, dropping from last weeks 3.72 percent average. Last year at this time, 30-year rates averaged 3.69 percent.
  • 15-year fixed-rate mortgages: averaged 2.95 percent, with an average 0.5 point, falling from 3.01 percent last week. A year ago, 15-year rates averaged 2.99 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.83 percent, with an average 0.4 point, dropping from last weeks 2.85 percent average. A year ago, 5-year ARMs averaged 2.97 percent.

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Dustin and Leah Wise

The Wise Team

(714)698-WISE call/text

Source = Freddie Mac