Low mortgage rates set up strong housing market for the rest of the year
Mortgage rates leveled out last week, according to Freddie Mac’s Primary Mortgage Market Survey.
For the week ending August 1, the 30-year fixed-rate mortgage (FRM) averaged 3.75% with an average 0.6 point. The rate remained unchanged from the week before. Last year, the 30-year FRM was 4.60%.
The 15-year FRM, on the other hand, moved up from 3.18% to 3.20% with an average 0.5 point. A year ago at this time, it was 4.08%.
Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) dipped from 3.47% to an average of 3.46% with an average 0.4 point. The five-year ARM was 3.93% at this time in 2018.
“Mortgage rates have essentially stabilized over the last two months, which reflects the recovery and improvement in the economy from the malaise earlier in the year,” said Sam Khater, chief economist at Freddie Mac. “Going forward, the combination of low mortgage rates, tight labor market and high consumer confidence should set up the housing market for continued improvement in home sales heading into the late summer and early fall.”
