Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending July 8 reveals that the 30-year fixed-rate mortgage (FRM) averaged 2.9 percent with an average 0.6 point, which is down from 2.98 percent last week.
A year ago at this time, the 30-year FRM averaged 3.03 percent.
“Mortgage rates decreased this week following the dip in U.S. Treasury yields,” explains Sam Khater, Freddie Mac’s chief economist. “While mortgage rates tend to follow Treasury yields closely, other factors can be impactful, such as the labor markets, which are continuing to improve per last week’s jobs report.” said Sam Khater, Freddie Mac’s Chief Economist.
The 15-year fixed-rate mortgage averaged 2.2 percent with an average 0.7 point, down from last week, when it averaged 2.26 percent. A year ago, the 15-year FRM averaged 2.51 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.2 point. This figure was down from 2.54 percent last week. The average was 3.02 percent a year ago.
“We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent,” Khater says.