How Much Lower Can Mortgage Rates Go?
The 30-year fixed-rate mortgage is edging closer each week to the 3% mark. Freddie Mac reported that the 30-year rate averaged 3.03% this week, the lowest since the government-sponsored enterprise began tracking such data in 1971. Last week, the 30-year rate hit 3.07%, a record at the time.
“However, it remains to be seen whether the demand will continue if COVID-19 cases rise to the point that it hinders economic growth.”
Freddie Mac reports the following national averages for the week ending July 9:
- 30-year fixed-rate mortgages: averaged 3.03%, with an average 0.8 point, falling from last week’s previous record low of 3.07%. Last year at this time, 30-year rates averaged 3.75%.
- 15-year fixed-rate mortgages: averaged 2.51%, with an average 0.8 point, falling from last week’s 2.56% average. A year ago, 15-year rates averaged 3.22%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.02%, with an average 0.3 point, rising slightly from last week’s 3% average. A year ago, 5-year ARMs averaged 3.46%.
Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.
Source: Freddie Mac