Mortgage interest rates have not changed this week, with the 30-year fixed rate averaging 2.87%, according to new data from Freddie Mac.
This week’s numbers represent a slight decline from last year’s at the time of 2.93% for a 30-year fixed rate. The 15-year fixed rate averaged 2.18%, slightly higher than a week earlier when it averaged 2.17%. Last year, the 15-year rate was 2.42%.
“Economic growth and accelerating inflation slowed last month, which calmed the markets and led to stabilization of mortgage rates,” said Sam Hather, chief economist at Freddie Mac. “On the eve of autumn, demand for home purchases remains stable, home sales remain stable and exceed pre-pandemic levels, and stocks of unsold homes are limited but slightly improving. These factors will help reduce the pressure on house prices by the end of the year. ”
The rate on the Treasury-indexed five-year adjustable-rate hybrid mortgage was 2.43% this week, slightly higher than a week earlier but lower than the same period last year (2.93%).
According to the Association of Mortgage Bankers, the number of applications for mortgages over the week decreased by 2.4%.according to data for the week of 23 August. The Market Composite Index, which measures the volume of applications for mortgage loans, fell 2.4%. The refinancing index was down 4% from the previous week, but was 2% higher than in the same time a year ago.
“Last week, mortgage interest rates did not change significantly, with the 30-year fixed rate remaining at 3.03%,” said Joel Kahn, deputy vice president of economic and industry forecasts for the MBA. “Despite the low rates, refinancing applications have declined and some borrowers are still waiting for rates to fall even lower.”
According to Kahn, the demand for housing still exceeds the amount of available stocks.
“Recent economic uncertainty and the pandemic have kept rates low over the past month, so the refinancing index has hovered around these levels,” he said. “Even with a slight increase, purchasing activity reached its highest level since the beginning of July, as the number of applications for regular and government loans increased. Home buying activity continues to be dominated by higher market price levels, with the average purchase loan now at $ 396,500, the highest average in five weeks. ”