WASHINGTON–After mortgage rates began rising recently there were forecasts that rates had finally reached bottom and would slowly increase during 2021. But new data show mortgage interest rates have tumbled once more to the lowest they had ever been–down to 2.65% on the 30-year mortgage, according to Freddie Mac.
After reaching a high of 2.79% mid-January, mortgage rates closed out last week at 2.73%, Freddie Mac’s newest weekly survey shows.
The 15-year mortgages saw also saw a decline, although it was negligible, dropping just one basis point to 2.20% from 2.20%.
According to the Mortgage Bankers Association, although there was a slight decrease in rates, the overall upward trend has led to a decrease in activity. Purchase applications were 4% lower on a seasonally adjusted basis compared to the week before, the MBA said. The volume was 16% higher compared to one year ago.
The MBA further reported refinances saw a decrease of 5% week-over-week, but were still 83% higher than the same time last year.