Low, Low, Low Mortgage Rates

David Deem

The declines keep rolling.

According to Freddie Mac's latest Primary Mortgage Market Survey® (PMMS®), average mortgage rates slid this week, in a critical help to the housing market.

"The drop in mortgage rates continues to stimulate the real estate market and the economy," says Sam Khater, chief economist at Freddie Mac. "Home purchase demand is up 5 percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three-and-a-half years. Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, which is equivalent to about $140 each month."

In July, existing-home sales surged, boosted by low mortgage rates.

"The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity," Khater says.

30-Year Fixed
Averaging 3.55 percent, with an average 0.5 point
Down from 3.6 percent the prior week and 4.51 percent the prior year

15-Year Fixed
Averaging 3.03 percent, with an average 0.5 point
Down from 3.07 percent the prior week and 3.98 percent the prior year

5-Year Adjustable
Averaging 3.32 percent, with an average 0.3 point
Down from 3.35 percent the prior week and 3.82 percent the prior year

Source: Freddie Mac



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