Mortgage rates decreased for a second week as the average rate for a 30-year fell to 6.77%, down from 6.89% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.78%.
“The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market.”
“However, homebuyers have yet to respond to lower rates, as purchase application demand is still roughly 5 percent below spring, when rates were approximately the same,” Khater adds. “This is not uncommon: sometimes as rates decline, demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase.”
The average rate for a 15-year fixed-rate mortgage was 6.05%, down from 6.17% last week and down just slightly from 6.06% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume increased 3.9% during the week ended July 12, driven by a significant drop in mortgage rates that resulted in a surge in refinances.
Photo: Ali Rezaei