In the wake of a number of weaker than expected economic reports, mortgage rates dropped once again for the third consecutive week, Freddie Mac reports.
According to mortgage records from the government-sponsored enterprise, the rate for a 30-year fixed-rate mortgage settled slightly above its record low, while the rate for a 15-year FRM reached a new all-time low.
"Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March," said Freddie Mac vice president and chief economist Frank Nothaft. "Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast."
Specifically, the Primary Mortgage Market Survey indicated that the average rate for a 30-year FRM dropped to 3.88 percent during the week ending April 12, down from 3.98 percent a week earlier. Meanwhile, the rate for a 15-year FRM averaged 3.11 percent, after falling from 3.21 percent.
As the level of housing affordability continues to hover near an all-time high, this decline in mortgage rates could push affordability even higher in the coming month as property values start to approach their bottom.