Just as some housing experts were predicting rates couldn’t get lower, they did. The 30-year fixed-rate mortgage reached a new all-time low, averaging 2.86% last week, according to Freddie Mac. “Mortgage rates have hit another record low due to a late-summer slowdown in the economic recovery,” says Sam Khater, Freddie Mac’s chief economist. “These low rates have ignited robust purchase demand activity, which has been growing at double-digit rates for four consecutive months. However, heading into the fall, it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 10:
30-year fixed-rate mortgages: averaged 2.86%, with an average 0.8 point, dropping from last week’s 2.93% average. Last year at this time, 30-year rates averaged 3.56%. The previous all-time low for 30-year rates was set at the beginning of August, averaging 2.88%.
15-year fixed-rate mortgages: averaged 2.37%, with an average 0.7 point, dropping from last week’s 2.42% average. A year ago, 15-year rates averaged 3.09%.
5-year hybrid adjustable-rate mortgages: averaged 3.11%, with an average 0.2 point, rising from last week’s 2.93% average. A year ago, 5-year ARMs averaged 3.36%.
Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.
Source: REALTOR® Magazine