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Mortgage Rates Drop For First Time In Weeks

Mortgage rates, or interest rates on home loans, dropped for the first time since February, 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 3.13 percent for the week ending April 8, 2020, down from 3.18 percent last week. A year ago at this time, the average rate was 3.33 percent.

The 15-year FRM this week averaged 2.42 percent, down from 2.45 last week. A year ago at this time, the 15-year FRM averaged 2.77 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.92 percent, up from 2.84 percent last week. It was 3.40 percent a year ago.

"After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields," said Sam Khater, Freddie Mac's Chief Economist. "As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility."

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