According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage has dropped further this week.
Mortgage rates have remained low over the past seven days, down 2 basis points for a 30-year loan, down from the previous week’s average, according to Freddie Mac’s Weekly Lender Survey.
“The summer mortgage rate drop continues as the 30-year fixed rate mortgage falls for the third week in a row,” Freddie Mac chief economist Sam Hather said in a statement. “Since a peak of 3.18 percent in April, mortgage rates have dropped thirty basis points. While this decline is small, it brings moderate relief to borrowers who buy in a market with high home valuations and scarce inventories. ”
During the week ending July 15, Freddie Mac’s weekly Initial research of the mortgage market Reported average rates for the following types of loans:
- For 30 year fixed rate mortgage, rates averaged 2.88 percent with an average of 0.7 points, up from 2.9 percent last week and 2.98 percent a year ago. Interest rates on 30-year loans hit a record low of 2.65 percent as of 1971 for the week ending January 7, 2021.
- Betting on Mortgage with a fixed interest rate for 15 years averaged 2.22 percent with an average of 0.6 points, slightly higher than last week’s 2.20 percent but lower than 2.48 percent a year ago. The all-time low for 15-year fixed rate mortgages in records dating back to 1991 was also observed during the week ending January 7, 2021, when rates averaged 2.16 percent.
- For 5 Year Adjustable Rate Hybrid Mortgages (ARM) Treasury Indexed, rates averaged 2.47 percent with an average of 0.3 points, up from 2.52 percent last week and 3.06 percent a year ago. 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 can provoke inflation and forcing the Federal Reserve to reduce its purchases of Treasuries and mortgage bonds, which could raise rates again.