After the U.K.’s vote to leave the European Union, mortgage rates plummeted to just above 2012’s all-time lows.
“This week’s survey rate is the lowest since May 2013 and only 17 basis points above the all-time low recorded in November 2012,” Freddie Mac Chief Economist Sean Becketti said. “This extremely low mortgage rate should support solid home sales and refinancing volume this summer.”
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This week, the 30-year fixed-rate mortgage averaged 3.48% for the week ending June 30, 2016. This is down from last week’s 3.56%, and down from last year’s 4.08%.
The 15-year FRM averaged 2.78%, down from last week’s 2.83%, and an annual decrease from 3.24%.
The five-year treasury-indexed hybrid adjustable-rate mortgage averaged 2.7%, down from last week’s 2.64% and last year’s 2.99%.
“In the wake of the Brexit vote, the yield on the 10-year U.S. Treasury bond plummeted 24 basis points,” Becketti said. “The 30-year mortgage rate declined as well, but not by as much, falling eight basis points to 3.48%.”
Despite the low rates, as of yet, the American consumer is not hopping on the news to get cheaper mortgages as the latest applications report shows.
While rates are currently at historic lows, Sam Khater, the economist for CoreLogic predicted it to go even lower. Even then, he Tweeted that this impact is minimal to what some others expected:
I estimate tomorrow's Freddie Mac 30-year rate will be 3.40% percent, down from 3.56%. Brexit impact smaller than many believe on rates.
— Sam (@TheSamKhater) June 30, 2016