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