The average rate for a benchmark 30-year mortgage inched down another 2 basis points over the past week to 3.31 percent, which is 86 basis points (0.86 percentage points) below its mark at the same time last year and within 2 basis points of an all-time low, according to Freddie Mac’s latest Mortgage Market Survey data.

The average rate for a 15-year fixed mortgage inched up 3 basis points over the past week to an average rate of 2.80 percent (which is 82 points below its mark at the same time last year), while the average rate for a 5-year adjustable dropped 6 basis points to 3.34 percent (which is 44 basis points below its mark at the same time last year and an “inverted” 3 basis points higher than the average 30-year rate).

At the same time, pending home sales activity in San Francisco is currently down 40 percent on a year-over-year basis and “purchase demand is weak due to economic tightening,” nationwide.

Comments from Plugged-In Readers

  1. Posted by Anna

    Such a great time to refinance – but ironically most people are either out of work or have experienced income reduction (evidently 3/4 of the nation) so qualifying is another issue.

    • Posted by SocketSite

      While purchase loan activity in the U.S. is currently down 35 percent on a year-over-year basis, refinancing activity is up 192 percent, at least in terms of applications.

    • Posted by Brahma (incensed renter)

      From Mortgage Lenders Are Hiring Like Mad to Handle Demand as Rates Plunge:

      The drop in rates, coming as Treasury yields plunge, is taxing an industry that was operating near capacity and setting off a battle for talent. Eric Mitchell, an executive at Michigan-based Gold Star Mortgage Financial, is luring employees with signing bonuses and the chance to make big money. That assumes they’re willing to work long hours while the market stays hot. “If you’re not making $1 million this year as a loan officer, you’re grossly incompetent,” Mitchell said. “‘I tell them, ‘We’re not working 40 hours a week, kiss your families goodbye.’”

      That was back in March, Before The Federal Reserve made a surprise move and cut its benchmark borrowing rate to near zero. Huge opportunity for real estate agents not currently selling to make a career switch.

      • Posted by Kyle S.

        Wow, that sounds like the recruitment pitch from Boiler Room.

      • Posted by Sam Zell

        Not worth getting paid 1m a year and not being able to see your family. Plenty of jobs that pay 500k to 750k and you only need to work 30 hours a week. You still have plenty of time to take naps and watch you kids grow up.

        • Posted by sfwatcher

          >Plenty of jobs that pay 500k to 750k and you only need to work 30 hours a week. You still have plenty of time to take naps and watch you kids grow up.

          you forgot /s

  2. Posted by scurvy

    Only the creme de la creme are getting rock-bottom refi rates. You need $200k+ in liquid balances in said bank to qualify for any cash-out refi, and even then the cash-out amounts are being capped.

    This is covered extensively on other sites. Rates are low, volume is razor thing. On a VWAP basis, this mortgage market is all fluff and no bang.

    This is in regards to jumbo loans, which is an absurdly high amount of the Bay Area. Conforming loan figures do not apply here.

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