The average US rate on long-term mortgage declined for three weeks in a row to 3.81 percent. The continuous drop in oil price and uncertainty in stock markets were the major reasons behind the fall. The average rate on 15-year mortgages dropped to 3.10 percent from 3.19 percent. 

The average rate rose from 3.63 percent a year ago. The historic average was recorded at six percent. The average US rage on 15-year fixed rate mortgages eased to 3.10 percent from 3.19 percent.  Generally, the average rate doesn't cover extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average US rage on mortgages was declined for the third straight week. The falling oil prices coupled with concerns about economy growth and directionless stock markets are putting more pressure on long-term US mortgage rates. The average mortgage rate fell from 3.92 percent to 3.81 percent, as reported by The Washington Post.

The drop in stock markets has resulted in surge in the US government bonds. Investors preferred to park their funds in safe havens. This depressed the yields on bonds as these track mortgage rates.

The US News reports that the average US rate on five-year adjustable-rate mortgages dropped to 2.91 percent from 3.01 percent. The fee was up at 0.5 point from 0.4 point. The average fee on 30-year mortgage remains unchanged at 0.6 point and the average fee on 15-year loan was at 0.5 point. 

During the last week, the oil price fell the most in a day since September. The Dow Jones Industrial average also declined over 500 points in a single session. The Wall Street witnessed a drop of 1.6 percent.  
The yield on 10-year Treasury bond fell to 1.98 percent during the week and recorded the lowest since October 2015. It fell to 1.97 percent from 2.09 percent. The benchmark yield too fell in early 2016 as stock markets were uncertain, according to The Registered Guard.

The benchmark yield was 2.30 percent at the end of 2015 and fell further in early sessions of 2016 in the wake of turbulence in the stock markets. Freddie Mac surveys lenders across the US for calculating average mortgage rates. This exercise is done at the beginning of each week. The average rate doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals to one percent of the loan amount.

The average rate doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals to one percent of the loan amount. Freddie Mac has released the Primeary Mortgage Market Survey (PMMS) results. From this year onwards, PMMS no longer provides data on 1-year average rate on mortgages. In addition to this, the regional breakouts will not be available on 30-year and 15year fixed rate mortgages.