The 30-year fixed-rate mortgage averaged 3.55% this week, the lowest average since November 2016, Freddie Mac reports. The lower mortgage rates are boding well for the housing market.

“The drop in mortgage rates continues to stimulate the real estate market and the economy,” says Sam Khater, Freddie Mac’s chief economist. “Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years.”

Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, or about $140 each month, Khater says.

“The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 22:

• 30-year fixed-rate mortgages: averaged 3.55%, with an average 0.5 point, dropping from last week’s 3.60% average. Last year at this time, 30-year rates averaged 4.51%.
• 15-year fixed-rate mortgages: averaged 3.03%, with an average 0.5 point, falling from last week’s 3.07% average. A year ago, 15-year rates averaged 3.98%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.32%, with an average 0.3 point, falling from last week’s 3.35% average. A year ago, 5-year ARMs averaged 3.82%.

Source: Mortgage rates back to 2016 territory, 08/23/2019)  – https://magazine.realtor/daily-news/2019/08/23/mortgage-rates-back-to-2016-territory.