Inflation is heating up and the economy is improving, yet mortgage rates keep falling.
According to data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 2.88%, with an average 0.7 point. (Points are fees paid to a lender equal to 1% of the loan amount. They are in addition to the interest rate.) It was 2.9% a week ago and 2.98% a year ago.
Since rising to 3.18% in April, the 30-year fixed average has fallen 30 basis points. A basis point is 0.01 percentage point.
The 15-year fixed-rate average slid to 2.22% with an average 0.6 point. It was 2.2% a week ago and 2.48% a year ago. The five-year adjustable rate average fell to 2.47% with an average 0.3 point. It was 2.52% a week ago and 3.06% a year ago.