Mortgage rates hit their lowest before the holiday weekend

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The 30-year fixed rate mortgage averaged 3.07% for the week ending July 2 (iStock)

Falling mortgage rates hit another milestone this week, according to latest report from Freddie Mac primary mortgage market study.

The 30-year fixed-rate mortgage was on average 3.07% for the week ending July 2, down 0.06 percentage points from the previous week and 0.68 percentage points year-on-year . This is the lowest rate on record since the survey began in 1971.

“Mortgage rates continue to slowly decline with a strong possibility that the average 30-year fixed-rate mortgage could drop below 3% later this year,” said Sam Khater, chief economist at Freddie Mac, in a statement. communicated.

“On the economic front, incoming data suggests that the rebound in economic activity has halted over the past two weeks with modest declines in consumer spending and a decline in purchasing activity,” a- he added.

The 15-year fixed rate mortgage edged down to 2.56%, while the 5-year Treasury indexed variable rate hybrid mortgage averaged 3%.

30-year and 15-year fixed rate mortgages both averaged 0.8 point for the week, which means consumers paid an average of 0.8% of the loan amount in discount and origination fees.

Since the Federal Reserve lowered its benchmark interest rate to near zero in mid-March, the spread between the 10-year Treasury yield and the average 30-year fixed-rate mortgage has been historically tall. Economists attributed this to challenges facing the retail mortgage market, which are expected to subside in the coming months.

Decreasing rate have led to a boom in mortgage applications in recent months, reaching a 11-year-old in mid-June before falling off amid doubts about economic recovery.


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