Global equity sell off heightens market unease.
Treasury bond yields fell as investors seek shelter. Mortgage rates followed suit.
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending January 7, 2016, showing mortgage rates mixed with the 30-year fixed-rate falling back below four percent to start the year.
- 30-year fixed-rate mortgage (FRM) averaged 3.97 percent with an average 0.6 point for the week ending January 7, 2016, down from last week when it averaged 4.01 percent. A year ago at this time, the 30-year FRM averaged 3.73 percent.
- 15-year FRM this week averaged 3.26 percent with an average 0.5 point, up from 3.24 percent last week. A year ago at this time, the 15-year FRM averaged 3.05 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.09 percent this week with an average 0.5 point, up from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 2.98 percent.
Sean Becketti, chief economist, Freddie Mac:
“Concerns about overseas economic developments have dominated financial markets to start the year. U.S. Treasury bond yields fell amidst a global equity selloff and flight to safety. In response, the 30-year mortgage rate dipped 4 basis points to 3.97 percent.”
photo credit: A Thousand Raindrops