“Events in China generated eye-catching volatility in equity markets worldwide over the past week,” says Sean Becketti, Freddie Mac’s chief economist. “Interest rates also rocked up and down — although to a lesser extent than equities — as investors alternated between flights to quality and bargain hunting among beaten-down stocks. Amidst all this confusion, the 30-year mortgage rate dropped to 3.84 percent, the lowest mark since May and the fifth consecutive week with a rate below 4 percent.”
Freddie Mac reported the following national averages for the week ending Aug. 27:
- 30-year fixed-rate mortgages: averaged 3.84 percent with an average 0.6 point, dropping from last week’s 3.93 percent average. A year ago, 30-year rates averaged 4.10 percent.
- 15-year fixed-rate mortgages: averaged 3.06 percent with an average 0.6 point, dropping from last week’s 3.15 percent average. Last year at this time, 15-year rates averaged 3.25 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.90 percent with an average 0.4 point, dropping from last week’s 2.94 percent average. Last year at this time, 5-year ARMs averaged 2.97 percent.
- 1-year ARMs: averaged 2.62 percent with an average 0.3 point, holding the same average as last week. Last year at this time, 1-year ARMs averaged 2.39 percent.
Source: Freddie Mac