The 30-year fixed-rate mortgage increased again this week, proving the impact of Brexit may just be over, according to Freddie Mac’s Primary Mortgage Market Survey released today.
“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their record, 10-year Treasury yield, and near-record, 30-year mortgage rate, lows,” Freddie Mac Chief Economist Sean Becketti said.
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage increased to an average 3.45% for the week ending July 21, 2016. This is an increase from last week’s 3.42% and last year’s 4.04%.
“This week, the 30-year fixed mortgage rate increased three basis points to a still-quite- low 3.45%,” Becketti said.
The 15-year FRM averaged 2.75% this week, an increase from last week’s 2.72% and from last year’s 3.21%.
This week’s five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.78%, an increase from last week’s 2.76% and last year’s 2.97%.
“With the Federal Reserve on hold and the UK monetary authority taking at least a one-month breather, we don’t expect any significant movement in mortgage rates in the near-term,” Becketti said. “This summer remains an auspicious time to buy a home or to refinance an existing mortgage.”
These results seem to confirm Capital Economics’ view that the impact of Brexit on the U.S. housing market has come to an end.