30-year fixed mortgage rates fall to 3.88%

After gradually rising for more than a month, fixed mortgage rates fell back this week.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 3.88 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.91 percent a week ago and 3.52 percent a year ago.

The 15-year fixed-rate average slid to 3.19 percent with an average 0.5 point. It was 3.21 percent a week ago and 2.79 percent a year ago. The five-year adjustable rate average ticked up to 3.17 percent with an average 0.4 point. It was 3.16 percent a week ago and 2.85 percent a year ago.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that half the experts it surveyed say rates will remain relatively stable in the coming week. Michael Becker, branch manager at Sierra Pacific Mortgage, is one who predicts rates will move slightly higher.

“Last week’s lower-than-expected consumer price index report helped bonds rally and moved mortgage rates slightly lower,” Becker said. “But that rally was short-lived. It seems nothing can shake the market’s risk on bent with equity markets hitting all-time highs almost daily. Because of this it will be hard for bonds to rally much.”

Meanwhile, mortgage applications rebounded last week, according to the latest data from the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — increased 3.6 percent. The refinance index grew 3 percent.