Mortgage Rates Continue to Fall, But Will Housing Market Improve?

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Mortgage rates continued to fall this week, as the average rate for a 30-year fixed rate mortgage dropped to 3.73%, down from 3.84% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.

It was the seventh time in the last nine weeks that the average rate for a 30-year dropped.

The 30-year is now at the lowest level since November 2016.

A year ago at this time, the average rate for a 30-year was 4.55%.

“While the industrial and trade related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Through late June, home purchase applications improved by five percentage points compared to the previous month. In the near-term, we expect the housing market to continue to improve from both a sales and price perspective.”

For the week ended June 27, the average rate for a 15-year fixed-rate mortgage was 3.16%, down from 3.25% the previous week.

A year ago at this time, the average rate for a 15-year was 4.04%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.39%, down from 3.48%.

A year ago at this time, the average rate of a five-year ARM was 3.87%.

Last week, the average rate for a 30-year increased slightly while the average rate for a 15-year and 5/1 ARM continued to fall.

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