Freddie Mac: 30-year mortgage rate holds steady
A Tale of Two Rates
This week, the 30-year fixed rate mortgage barely moved, however the 10-year Treasury yield rebounded sharply, according to Freddie Mac’s Primary Mortgage Market Survey released today.
“We describe the last few weeks as A Tale of Two Rates,” Freddie Mac Chief Economist Sean Becketti said. “Immediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows.”
“This week, markets stabilized and the 10-year Treasury yield rebounded sharply,” Becketti said. “In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage averaged 3.42% for the week ending in July 14, 2016, a slight increase from last week’s 3.41%. It is still down from last year’s 4.09%.
The 15-year FRM averaged 2.72%, a decrease from last week’s 2.74%, and from 3.25% last year.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.76% this week, an increase from last week’s 2.68%, but a decrease from last year’s 2.96%.
“This week, the 30-year fixed rate barely budged, rising just one basis point to 3.42%,” Becketti said. “This pattern suggests that mortgage rates are likely to remain low throughout the summer.”