That volatility has put downward pressure on mortgage interest rates, resulting in the third straight week of lower rates and average U.S. 30-year, fixed-rate mortgage interest rates hitting a three-month low.
The average interest rate for a 30-year, fixed-rate mortgage declined 11 basis points to 3.81 percent, with an average 0.6 point, for the week ending January 21, 2016, Freddie Mac reported. Last week the average was 3.92 percent. The average was 3.63 percent during the same time frame last year.
The 15-year, fixed-rate loan averaged 3.10 percent, with an average 0.5 point, a decline of nine basis points from 3.19 percent last week. A year ago at this time, the same mortgage averaged 2.93 percent.
"The Freddie Mac mortgage rate survey had difficulty keeping up with market events this week," Freddie Mac chief economist Sean Becketti said. "The 30-year mortgage rate dropped 11 basis points to 3.81 percent, the lowest rate in three months. This drop reflected weak inflation – 0.7 percent CPI inflation for all of 2015 – and nonstop financial market turbulence that is driving investors to the safe haven of Treasuries; however, the survey was largely complete prior to Wednesday's Treasury rally that drove the yield on the 10-year Treasury below 2 percent, down 29 basis points since the end of 2015."