WASHINGTON–Rates on 30-year, fixed-rate mortgages are at near three-year lows, although data also indicate that qualifying for those rates has become increasingly difficult.
Freddie Mac data last week show the average on the 30-year to be 3.57%, with an average 0.5 point for the week ending May 12, 2016, down from one week earlier when it averaged 3.61%. One year ago at the same time the 30-year FRM averaged 3.85%.
Freddie Mac said the 15-year FRM last week averaged 2.81% with an average 0.5 point. A year ago, the 15-year FRM averaged 3.07%.
The average on the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78% last week with an average 0.5 point, also down from one week and one year earlier, according to Freddie Mac.
Despite the low rates, the home ownership rate in the U.S. is approximately 63%, the lowest rate in 50 years. It is expected to decline further as Millennials have difficulty purchasing their first home or have opted to simply not do so.