Mortgage Rates Inch Up From Record Lows

Freddie Mac Mortgage Rates July 24, 2020

Mortgage rates increased for the first time in weeks, but rates remain near historical lows.

The 30-year fixed-rate mortgage shattered records two weeks ago, averaging 2.98%. Last week, they increased slightly to a 3.01% average, Freddie Mac reports. “While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop,” says Sam Khater, Freddie Mac’s chief economist. “In the short term, this means the demand will continue on the back of near-record-low mortgage rates. However, the most recent consumer spending data has been pointing to slow growth since mid-June. The concern is that the pause in economic activity will cause unemployment to remain elevated, which will lead to longer-term labor market distress.”

Freddie Mac reported the following national averages with mortgage rates for the week ending July 23:

30-year fixed-rate mortgages: averaged 3.01%, with an average 0.8 point, rising slightly from 2.98%. Last year at this time, 30-year rates averaged 3.75%.

15-year fixed-rate mortgages: averaged 2.54%, with an average 0.7 point, increasing from last week’s 2.48% average. A year ago, 15-year rates averaged 3.18%.

5-year hybrid adjustable-rate mortgages: averaged 3.09%, with an average 0.3 point, up from last week’s 3.06% average. A year ago, 5-year ARMs averaged 3.47%.

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