WASHINGTON – Long-term mortgage continued to decline this week towards their lowest in five decades, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan dipped from a 30-year-low of 4.58% last week to 4.57% this week. The average for the 15-year mortgage inched up from 4.04% to 4.07%.
ARM rates moved lower too, with the average for the five-year ARM slipping from 3.79% to 3.75% this week; and the average for the one-year ARM moving from 3.80% to 3.75%.
“With mortgage rates falling to historic lows, refinance activity has been strong over the past three months,” said Frank Nothaft, Freddie Mac’s chief economist.
The Mortgage Bankers Association reported applications to refinance an existing mortgage rose to the highest level in 13 months last week, even as applications for purchases declined. Refinancing accounted for 79% of mortgage applications last week.
