Mortgage rates dipped during the week ending August 8, according to the Freddie Mac Primary Mortgage Market Survey (PMMS).
The PMMS showed that the 30-year fixed-rate mortgage (FRM) fell to 3.60% with an average 0.6 point from the previous week’s 3.75%. The drop marked its lowest point since November 2016. Last year at this time, the 30-year FRM averaged 4.59%.
The 15-year FRM moved down to 3.05% with an average 0.5 point from 3.20% the week before. A year ago, the 15-year FRM averaged 4.05%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) declined to 3.36% with an average 0.3 point, down from 3.46% the prior week. Last year, the five-year ARM averaged 3.90%.
“There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment,” Freddie Mac Chief Economist Sam Khater said. “Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.”