McLEAN, Va. — If your New Year’s resolution was to refinance, this may be the time to do it.
Global economic uncertainty has left the stock market shaky, which in turn has caused investors to flee to the safety of bonds. With yields on bonds falling, mortgage rates have followed suit.
According to the latest data released this past week by Freddie Mac, the year opened with a rates tumble: The 30-year fixed-rate average fell to its lowest level in more than 19 months, plummeting to 3.73 percent with an average 0.6 point. It was 3.87 percent a week ago and 3.87 percent a year ago.
The 30-year fixed rate is at its lowest level since May 23, 2013, when it was 3.59 percent. That was the week that then-Federal Reserve chairman Ben S. Bernanke testified before Congress about tapering the federal government’s bond-buying program, causing rates to soar.
The 15-year fixed-rate average sank to 3.05 percent with an average 0.5 point. It was 3.15 percent a week ago and 3.56 percent a year ago.
Hybrid adjustable rate mortgages were also down. The five-year ARM average fell to 2.98 percent with an average 0.5 point. It was 3.01 percent a week ago and 3.15 percent a year ago. The one-year ARM average dropped to 2.39 percent with an average 0.4 point. It was 2.4 percent a week ago.
The holiday season was likely the reason mortgage applications declined the final two weeks of the year, according to the latest data from the Mortgage Bankers Association.
The market composite index, a measure of total loan application volume, decreased 9.1 percent from two weeks ago. The MBA did not do a report a week ago because its offices were closed. The refinance index fell 12 percent, while the purchase index dropped 33 percent.
