Mortgage rates hit new record low for 15-year loans


15-year fixed-rate mortgage rates hit a new all-time low this week as rates on 30-year loans also fell one tenth of a percentage point, according to Freddie Mac’s. weekly survey of lenders

“Concerns about the Delta option and the overall trajectory of the pandemic are undoubtedly affecting economic growth,” said Freddie Mac chief economist Sam Hather. “As the economy continues to recover, Treasury yields have declined and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of the low rates due to low inventory as well as high prices… “

During the week ending July 22, Freddie Mac’s weekly Initial research of the mortgage market Reported average rates for the following types of loans:

  • For 30-year fixed-rate mortgages, rates averaged 2.78 percent with an average of 0.7 points, up from 2.88 percent last week and 3.01 percent a year earlier. Interest rates on 30-year loans hit an all-time low of 2.65 percent recorded in 1971 during the week ending January 7, 2021.
  • Rates on 15-year fixed-rate mortgages averaged 2.12 percent with an average of 0.7 points, down 2.22 percent last week and down 2.54 percent a year ago. That mark was a new all-time low for 15-year fixed-rate mortgages in records dated 1991, replacing the previous low set on January 7, 2021, when rates averaged 2.16 percent.
  • For hybrid adjustable rate mortgages (ARM) indexed by the Treasury for 5 years, the average rates were 2.49 percent with an average of 0.4 points, slightly higher than 2.47 percent last week and 3.09 percent a year. back. ARM’s 5-year loan rates hit a record low of 2.56 percent for the week ending May 2, 2013, according to 2005 Freddie Mac records.

The Freddie Mac study tracks conventional, eligible home loans for borrowers who have invested 20 percent and have excellent creditworthiness. Borrowers with larger loans, lower down payments or lower credit ratings can expect higher rates.

Tariffs temporarily rose in February and March, when markets reacted to inflation concerns. They have since come back down and about 3 percent remained. But rising house prices and rents could fuel pumping and forcing the Federal Reserve to cut back purchases of Treasuries and mortgage bonds, which could raise rates again.

Write to Daniel Houston

Source link


Please enter your comment!
Please enter your name here