Mortgage rates continue their declining trend, according to Freddie Mac’s latest Primary Mortgage Market survey.

Freddie Mac Chief Economist Sam Khater says that after a rapid increase throughout most of the spring, mortgage rates have now declined in five of the past six weeks.

“The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” Khater said. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

“Although the current economic expansion is in its 10th year, residential single-family real estate was initially slow to recover,” Khater added. “Now, backed by the demographic tailwind provided by millennials reaching the peak age to buy their first home, the housing market should have some room to grow going forward.”

Freddie Mac- July 5

 (Source: Freddie Mac)

According to the report, the 30-year fixed-rate mortgage averaged 4.52% for the week ending July 5, 2018, down from 4.55% last week, and up from 3.96% last year.

The 15-year FRM fell to an average 3.99% this week, down from last week when it averaged 4.04%. This time last year, the 15-year FRM was 3.22%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.74% for this week, down from 3.87% last week, and up from this time last year when it was 3.21%.