Mortgage Rates Drop From Recent Highs

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After weeks of rising rates, mortgage rates are now falling. The 30-year fixed-rate mortgage averaged 5.10% this week, Freddie Mac reports.

“Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” says Sam Khater, Freddie Mac’s chief economist. “Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.”

Freddie Mac reports the following national averages with rates for the week ending May 26:

• 30-year fixed-rate mortgages: averaged 5.10%, with an average 0.9 points, dropping from last week’s 5.25% average. Last year at this time, 30-year rates averaged 2.95%.
• 15-year fixed-rate mortgages: averaged 4.31%, with an average 0.8 points, dropping from last week’s 4.43% average. A year ago, 15-year rates averaged 2.27%.
• 5-year hybrid adjustable-rate mortgages: averaged 4.20%, with an average 0.3 points, rising from last week’s 4.08% average. A year ago, 5-year ARMs averaged 2.59%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.