Average U.S. mortgage interest rates declined for the fifth consecutive week for the week ending May 30, 2019, and dropped below 4 percent for the first time since January 2018, according to Freddie Mac's weekly Primary Mortgage Market Survey.
Average interest rates have remained below year-ago levels for 16 straight weeks. Average U.S. interest rates had risen above 5 percent in November 2018 before starting to decline at the end of last year.
"While economic data points to continued strength ... fears of the impact of the trade war with China grow," Freddie Mac's chief economist Sam Khater said. Lower rates should give the housing market a boost, Khater added.
The 15-year, fixed-rate mortgage averaged 3.46 percent, with an average 0.5 point, compared to 3.51 percent the prior week and 4.06 percent the previous year. The 15-year mortgage is a popular choice with homeowners who are refinancing their home loans.
The five-year, adjustable-rate mortgage (ARM) averaged 3.60 percent, with an average 0.4 point, down from 3.68 percent the prior week. The five-year ARM averaged 3.80 percent during the same time last year.home purchases
The Mortgage Bankers Association reported May 29, 2019, that mortgage applications for home purchases declined for the third straight week; however, purchase applications were 7 percent higher than the same period last year.