Mortgage rates dropped to a new all-time low during the week ended July 9, as the average rate for a 30-year fixed-rate mortgage fell to 3.03%, down from 3.07% the previous week and down from 3.75% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s the lowest average rate for the 30-year in the survey’s history dating back to 1971.
“The summer is heating up as record low mortgage rates continue to spur homebuyer demand,” says Sam Khater, chief economist for Freddie Mac, in a statement. “However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth.”
The average rate for a 15-year fixed-rate mortgage was 2.51%, down from 2.56% the previous week and down from 3.22% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.02%, up slightly from 3.00% the previous week but down from 3.46% a year ago.