The average interest rate on a 30-year fixed rate mortgage dipped further this week, according to data from Freddie Mac.
Mortgage rates remained low over the past seven days, dipping by 2 basis points for a 30-year loan compared to the previous week’s average, according to Freddie Mac’s weekly lender survey.
“The summer swoon in mortgage rates continues as the 30-year fixed-rate mortgage fell for the third consecutive week,” Freddie Mac Chief Economist Sam Khater said in a statement. “Since their peak at 3.18 percent in April, mortgage rates have declined by thirty basis points. While this decline is not large, it provides modest relief to borrowers who are purchasing in a market with strong home appreciation and scant inventory.”
For the week ending July 15, Freddie Mac’s weekly Primary Mortgage Market Survey reported average rates for the following types of loans:
- For 30-year fixed-rate mortgages, rates averaged 2.88 percent with an average 0.7 point, down from 2.9 percent last week and 2.98 percent a year ago. Rates for 30-year loans hit an all-time low of 2.65 percent in records dating to 1971 during the week ending Jan. 7, 2021.
- Rates on 15-year fixed-rate mortgages averaged 2.22 percent with an average 0.6 point, up slightly from 2.20 percent last week but down from 2.48 percent a year ago. The all-time low for 15-year fixed rate mortgages in records dating to 1991 was also seen during the week ending Jan. 7, 2021, when rates averaged 2.16 percent.
- For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.47 percent with an average 0.3 point, down from 2.52 percent last week and 3.06 percent a year ago. Rates on 5-year ARM loans hit an all-time low of 2.56 percent during the week ending May 2, 2013, in Freddie Mac records dating to 2005.
Freddie Mac’s survey tracks conventional, conforming, home purchase loans for borrowers who put 20 percent down and have excellent credit. Borrowers taking out bigger loans, making smaller down payments, or with lower credit scores can expect to be quoted higher rates.
Rates rose temporarily in February and March as markets reacted to inflation fears. They’ve since come back down and have remained around 3 percent. But rising home prices and rents could fuel inflation and force the Federal Reserve to taper its purchases of Treasurys and mortgage bonds, which could send rates back up.
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