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Mortgage Rates Hit All-time Low Mark

Mortgage rates, or interest rates on home loans, again dropped this week to hit all-time low mark, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.15 percent for the week ending May 28, 2020, down from 3.24 percent last week. A year ago at this time, the average rate was 3.99 percent.

The 15-year FRM this week averaged 2.62 percent, down from 2.70 percent last week. A year ago at this time, the 15-year FRM averaged 3.46 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.13 percent, down from 3.17 percent last week. It was 3.60 percent a year ago.

"The 30-year fixed-rate mortgage has again hit the lowest level in our survey's nearly 50-year history, breaking the record for the third time in just the last few months," said Sam Khater, Freddie Mac's Chief Economist.

"These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week—a remarkable turnaround given the sharp contraction in economic activity. Additionally, refinance activity remains elevated and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year. This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy."

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