Freddie Mac: Fixed Mortgage Rates Basically Flat

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Fixed mortgage rates stayed more or less flat during the week ended July 14, with the 30-year, fixed-rate mortgage (FRM) averaging around 3.42%, up slightly from the previous week, when it was around 3.41%, according to Freddie Mac’s Mortgage Market report.

A year ago at this time, the 30-year FRM averaged 4.09%.

The average rate for a 30-year FRM remains near its all-time record low of 3.31% in November 2012.

The average rate for a 15-year FRM was 2.72%, down from 2.74% the previous week. A year ago at this time, the 15-year FRM averaged 3.25%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.76%, up from 2.68%. A year ago, the five-year ARM averaged 2.96%.

“We describe the last few weeks as ‘A Tale of Two Rates,'” says Sean Becketti, chief economist for Freddie Mac, in a statement. “Immediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows. This week, markets stabilized and the 10-year Treasury yield rebounded sharply. In contrast, the 30-year mortgage rate declined after the Brexit vote but only by half as much as the 10-year Treasury yield. This week, the 30-year fixed rate barely budged, rising just one basis point to 3.42 percent. This pattern suggests that mortgage rates are likely to remain low throughout the summer.”

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