Mortgage Rates Inch Up, But Buyers Are Still Getting Deals
After three weeks of mostly staying steady, average mortgage rates rose this week. However, rates still remain at multiyear lows, keeping borrowing costs low for those shopping for homes this summer.
“The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short-term interest rates, which should provide support for business and investor sentiment,” says Sam Khater, Freddie Mac’s chief economist. “Despite this slight increase in rates, home buyers are taking advantage of the multiyear low rates in droves, which is evident in the consistently higher refinance and purchase application volumes. The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”
Freddie Mac reported the following national averages with mortgage rates for the week ending July 18:
- 30-year fixed-rate mortgages: averaged 3.81%, with an average 0.6 point, up from last week’s 3.75%. Last year at this time, 30-year rates averaged 4.52%.
- 15-year fixed-rate mortgages: averaged 3.23%, with an average 0.5 point, rising from last week’s 3.22% average. A year ago, 15-year rates averaged 4%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.48%, with an average 0.4 point, rising from last week’s 3.46% average. A year ago, 5-year ARMs averaged 3.87%.
Source: Freddie Mac