Mortgage Rates Continue to Move Down
Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates, with the 30-year fixed-rate mortgage averaging 2.90% for the week ending July 8, 2021, down from 2.98% the previous week.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates, with the 30-year fixed-rate mortgage averaging 2.90% for the week ending July 8, 2021, down from 2.98% the previous week. The 15-year fixed-rate mortgage also fell to 2.20%, while the 5-year ARM averaged 2.52%. This decline in rates follows a drop in U.S. Treasury yields and suggests potential opportunities for homebuyers and refinance borrowers. Freddie Mac’s Chief Economist, Sam Khater, indicated that economic growth may lead to rising interest rates in the future.
Positive
- 30-year fixed-rate mortgage dropped to 2.90%, providing lower borrowing costs.
- 15-year fixed-rate mortgage decreased to 2.20%, enhancing affordability for shorter-term loans.
- 5-year ARM averaged 2.52%, down from previous week, appealing for adjustable-rate borrowers.
Negative
- None.
Details
News Market Reaction – FMCC
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MCLEAN, Va., July 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.90 percent.
“Mortgage rates decreased this week following the dip in U.S. Treasury yields. While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report,” said Sam Khater, Freddie Mac’s Chief Economist. “We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.”
News Facts
- 30-year fixed-rate mortgage averaged 2.90 percent with an average 0.6 point for the week ending July 8, 2021, down from last week when it averaged 2.98 percent. A year ago at this time, the 30-year FRM averaged 3.03 percent.
- 15-year fixed-rate mortgage averaged 2.20 percent with an average 0.7 point, down from last week when it averaged 2.26 percent. A year ago at this time, the 15-year FRM averaged 2.51 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.2 point, down from last week when it averaged 2.54 percent. A year ago at this time, the 5-year ARM averaged 3.02 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ba92705d-3cf6-40ea-9692-9aa92b91632e
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