CFAH

The average rate for a benchmark 30-year mortgage has dropped back down to the 3-year low of 3.45 percent it hit three weeks ago, which is within 14 basis points (0.14 percentage points) of the all-time low it hit in November of 2012 and 90 basis points below its mark at the same time last year, according to Freddie Mac’s latest Mortgage Market Survey data.

At the same time, the average rate for a 15-year fixed mortgage has dropped back down to 2.95 percent, which is 82 basis points below its mark at the same time last year, while the average rate for a 5-year adjustable is back down to 3.20 percent, which is 64 basis points below its mark at the same time last year, for an inverted spread between the 15-year fixed and 5-year adjustable rates of 25 basis points.

And while the Fed had signaled its intention to leave the federal funds rate unchanged over the next year and then start raising the rate in 2021, the probability of another rate cut this year just jumped to 99.5 percent, with no chance of a rate hike, according to an analysis of the futures market.