Near historic lows, mortgage rates will barely change at the end of July

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Mortgage rates remained stable by the end of the month, while interest rates on 15-year fixed-rate loans remained at an all-time low, according to Freddie Mac’s weekly survey of lenders.

Mortgage rates on loans with a fixed rate for 15 years remained at a record low this week as average rates on 30-year loans climbed 2 basis points, according to Freddie Mac’s weekly survey of lenders

“As the economy tries to return to its pre-pandemic state and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the low mortgage rates of all time, “Freddie Mac chief economist Sam Hater said in a statement. “Largely due to current conditions, the 30-year fixed rate remains below three percent for the fifth consecutive week, while the 15-year fixed rate is hitting another all-time low.”

For the week ending July 29, Freddie Mac’s Weekly Mortgage Market Survey revealed average rates for the following loan types:

  • For 30-year fixed-rate mortgages, rates averaged 2.80 percent, averaging 0.7 points, up from 2.78 percent last week and lower than 2.99 percent a year ago. 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 2.10 percent with an average of 0.7 points, down 2.12 percent last week and down 2.51 percent a year ago. The brand has kept rates on 15-year fixed-rate mortgages at an all-time low in records dating from 1991, replacing the previous minimum set on July 22, 2021, when rates averaged 2.12 percent.
  • For Treasury-indexed five-year adjustable rate (ARM) hybrid mortgages, rates averaged 2.45 percent with an average of 0.3 points, slightly lower than 2.49 percent last week and 2.94 percent a year ago. ARM’s 5-year loan rates are at their lowest since at least 2005, staying below the previous low of 2.56 percent for the week ending May 2, 2013.

Freddie Mac’s study of conventional, eligible home loans suggests that borrowers invest 20 percent and have excellent creditworthiness. Borrowers with lower credit ratings or those with lower initial contributions may be offered different rates.

Rates declined from February to March, when fears of inflation made mortgages temporarily more expensive for borrowers. However, since then, rates on 30-year loans have changed. hovers around or below 3 percent

Investors are closely watching the actions of the Federal Reserve. If the central bank decides to buy fewer Treasuries and mortgage bonds to curb inflation, rates could rise again.

Write to Daniel Houston



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