Mortgage Rates Fall to 3-Month Low

Mortgage Rates Fall to 3-Month Low
Freddie Mac | July 6, 2018

Mortgage rates were back down across the board again this week, offering some temporary relief to home buyers. Rates posted a rapid increase throughout most of the spring but have recently reversed course, declining in five of the past six weeks. The 30-year fixed-rate mortgage is now at its lowest average since April.

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“The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” says Sam Khater, Freddie Mac’s chief economist. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 5:

  • 30-year fixed-rate mortgages: averaged 4.52 percent, with an average 0.5 point, dropping from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.96 percent.
  • 15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, falling from last week’s 4.04 percent average. A year ago, 15-year rates averaged 3.22 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.74 percent, with an average 0.3 point, falling from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.21 percent.

Source: Freddie Mac; REALTOR® Magazine 070618

Falling Mortgage Rates Offer Affordability Relief

Falling Mortgage Rates Offer Affordability Relief
Freddie Mac | June 29, 2018

Mortgage rates declined this week, marking the fourth drop in the past five weeks, Freddie Mac reports.

“The decrease in borrowing costs is a nice slice of relief for prospective buyers looking to get into the market this summer,” says Sam Khater, Freddie Mac’s chief economist. “Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.”

Overall, Khater says the economy and the housing market are on “solid footing” this summer, which should support continued strength in housing demand. “Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 28:

  • 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, falling from last week’s 4.57 percent average. Last year at this time, 30-year rates averaged 3.88 percent.
  • 15-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.5 point, which is unchanged from a week ago. Last year at this time, 15-year rates averaged 3.17 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.3 point, rising from last week’s 3.83 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

Source: Freddie Mac; REALTOR® Magazine 062918

Mortgage Rates Drop Again This Week

Mortgage Rates Drop Again This Week
Freddie Mac | June 22, 2018

Borrowers found lower mortgage rates again this week, marking the third decrease in rates in the past four weeks.

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“After a sharp run-up in the early part of 2018, rates have stabilized over the last three months, with only a modest uptick since March,” says Sam Khater, Freddie Mac’s chief economist. “However, existing-home sales have hit a wall, declining in six of the last nine months on a year-over-year basis.”

The National Association of REALTORS® reported earlier this week that existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—dropped 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May. Sales are now 3 percent lower than a year ago. Home prices also reached a new all-time high last month—a median of $264,800.

“Persistently low supply levels, and not this year’s climb in mortgage rates, are handcuffing sales—especially at the lower end of the market,” Khater says. “Home shoppers can’t buy inventory that doesn’t exist.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 21:

  • 30-year fixed-rate mortgages: averaged 4.57 percent, with an average 0.5 point, falling from last week’s 4.62 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
  • 15-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.4 point, falling from last week’s 4.07 percent average. A year ago, 15-year rates averaged 3.17 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, unchanged from a week ago. A year ago, 5-year ARMs averaged 3.14 percent.

Source: Freddie Mac; REALTOR® Magazine 062218

Mortgage Rates Near Highest Averages of Year

Mortgage Rates Near Highest Averages of Year
Freddie Mac article by Daily Real Estate News | June 15, 2018

Mortgage rates were back on the rise this week, increasing to their second highest level this year. The move follows the Federal Reserve’s vote on Wednesday to raise its federal fund rate by 25 basis points.

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The 30-year fixed-rate mortgage followed suit, rising eight basis points to average 4.62 percent during the week, Freddie Mac reports.

“The good news is that the impact on consumer budgets will be smaller than past rate hike cycles,” says Freddie Mac’s Chief Economist Sam Khater. “That is because a much smaller segment of mortgage loans in today’s market are pegged to short-term rate movements. The adjustable rate mortgage share of outstanding loans is a lot smaller now—8 percent versus 31 percent—than during the Fed’s last round of tightening between 2004 and 2006. Still, inflation continues to firm and borrowing costs are inching higher. Although wages are slowly growing, stronger gains would certainly go a long way in helping consumers offset these increases in prices and rates.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 14:

  • 30-year fixed-rate mortgages: averaged 4.62 percent, with an average 0.4 point, up from last week’s 4.54 percent average. Last year at this time, 30-year rates averaged 3.91 percent.
  • 15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.4 point, rising from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.18 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, rising from last week’s 3.74 percent average. A year ago, 5-year ARMs averaged 3.15 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 061518

Rates Hit Highest Level in 7 Years

Rates Hit Highest Level in 7 Years
Freddie Mac   article by Daily Real Estate News | May 18, 2018

Mortgage rates reversed course and soared to the highest averages in seven years, Freddie Mac reports. The 30-year fixed-rate mortgage averaged 4.61 percent this week, which matches the highest level since May 19, 2011.

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“Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” says Sam Khater, Freddie Mac’s chief economist. “Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels of buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 17:

  • 30-year fixed-rate mortgages: averaged 4.61 percent, with an average 0.4 point, rising from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 4.02 percent.
  • 15-year fixed-rate mortgages: averaged 4.08 percent, with an average 0.4 point, increasing from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.82 percent, with an average 0.3 point, rising from last week’s 3.77 percent average. A year ago, 5-year ARMs averaged 3.13 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 051818

Mortgage Rates Barely Stirred This Week

Mortgage Rates Barely Stirred This Week
Freddie Mac   article by Daily Real Estate News | May 11, 2018

Mortgage rates have mostly taken a pause after a series of rises in April. The 30-year fixed-rate mortgage averaged 4.55 percent last week, unchanged from a week ago.

“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth, and restrained inflation,” says Sam Khater, Freddie Mac’s chief economist. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.”

Still, mortgage rates are up 50 basis points from a year ago, Khater notes. This has “put pressure on the budgets of some home shoppers” as “weak inventory levels are what’s keeping the housing market from a stronger sales pace.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 10:

  • 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, unchanged from a week ago. A year ago, 30-year rates averaged 4.05 percent.
  • 15-year fixed-rate mortgages: averaged 4.01 percent, with an average 0.4 point, falling from last week’s 4.03 percent average. A year ago, 15-year rates averaged 3.29 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.77 percent, with an average 0.3 point, rising from last week’s 3.69 percent average. A year ago, 5-year ARMs averaged 3.14 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 051118

Mortgage Rates Surge to 4-Year High

Mortgage Rates Surge to 4-Year High
Freddie Mac   article by Daily Real Estate News | April 27, 2018

Mortgage rates continued their climb this week, reaching their highest level since 2013.

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“Higher Treasury yields, driven by rising commodity prices, more Treasury issuances, and the steady stream of solid economic news are behind the uptick in rates over the past week,” says Sam Khater, Freddie Mac’s chief economist. “Despite the increase in borrowing costs, demand for home purchase credit remains solid.” The Mortgage Bankers Association reported that mortgage applications were up 11 percent from a year ago.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 26:

  • 30-year fixed-rate mortgages averaged 4.58 percent, with an average 0.5 point, rising from last week’s 4.47 percent average. Last year at this time, 30-year rates averaged 4.03 percent.
  • 15-year fixed-rate mortgages averaged 4.02 percent, with an average 0.4 point, rising from last week’s average of 3.94 percent. A year ago, 15-year fixed-rate mortgages averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.74 percent, with an average 0.3 point, increasing from last week’s 3.67 percent average. A year ago, 5-year ARMs averaged 3.12 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 042718