Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate mortgage continuing to drop this week for the 5th week in a row.
The surveys reveals the following:
30-year fixed-rate mortgage (FRM) averaged 3.82% with an average 0.5 point for the week ending August 31, 2017 showing a .04% decline from last week.
15-year FRM this week averaged 3.12% with an average 0.5 point, showing a .04% drop from last week.
5/1-year ARM averaged 3.14 percent this week with an average 0.5 point, dropping .03% from the week before.
The 10-year Treasury bond is linked closely to the mortgage rates and serve as an indicator of where the mortgage rates are going. The Treasury yield fell to a new 2017-low on Tuesday, causing the mortgage rates to also fall.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.