Mortgage Rates Show Biggest Weekly Drop In A Decade

What goes up, has come down hard. Rates for 30-year fixed rate mortgages, which not that long ago were rising, had the biggest week-over-week drop in 10 years.

As reported in the Washington Post (via the Lowell [Mass.] Sun) the 30-year fixed-rate mortgage (FRM) average plunged to 4.06 percent, with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) The 30-year fixed, which was 4.28 percent a week ago, had its biggest one-week drop in a decade. It was 4.4 percent a year ago and is at its lowest level in 14 months.

Also, according to Freddie Mac, the 15-year FRM averaged 3.57 percent with an average 0.4 point, down from last week when it averaged 3.71 percent. A year ago at this time, the 15-year FRM averaged 3.90 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75 percent with an average 0.3 point, down from last week when it averaged 3.84 percent. A year ago at this time, the 5-year ARM averaged 3.66 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage, according to Freddie Mac. Borrowers may still pay closing costs which are not included in the survey.

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