Mortgage rates dropped to their lowest point in three years this week, as a 30-year fixed loan fell to 3.57%, according to Freddie Mac.
Last week, a 30-year fixed-rate mortgage (FRM) averaged 3.61% and a year ago at this time it averaged 3.85%.
According to a post to Freddie Mac's site,
Prospective home buyers will continue to take advantage of a falling rate environment that has seen mortgage rates drop in 14 of the previous 19 weeks.
The reason for the low rate could be disappointing April employment data that once again kept a lid on Treasury yields, which have struggled to stay above 1.8% since late March.
This is good news for the remodeling industry as low mortgages rates mean that clients have more disposable income to take on home improvement projects.
·Fifteen-year FRM this week averaged 2.81% with an average 0.5 point, down from last week when it averaged 2.86%. A year ago at this time, the 15-year FRM averaged 3.07%.
·Five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78% this week with an average 0.5 point, down from last week when it averaged 2.80%. A year ago, the 5-year ARM averaged 2.89%.