Mortgage rates hit their lowest level since 2016
Mortgage rates have plunged to the lowest level since November 2016.
Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) dipped to an average 3.73% for the week ending June 27. The 30-year FRM leveled out last week at 3.84% and averaged 4.55% at this time last year.
“While the industrial and trade-related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” Freddie Mac Chief Economist Sam Khater said.
The 15-year FRM was 3.16% with an average 0.5 point, dropping from last week’s 3.25% and last year’s 4.04%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell from 3.48% to 3.39% with an average 0.4 point. A year ago, the five-year ARM averaged 3.87%.
“Through late June, home purchase applications improved by five percentage points compared to the previous month,” Khater said. “In the near term, we expect the housing market to continue to improve from both a sales and price perspective.”
