The rate on a 30-day fixed-rate mortgage averaged 2.88%, inching up compared to last week. It was 2.86% a year ago.
Rates on 15-year fixed-rate mortgages followed the same trend, averaging 2.19%, nearly identical to the 2.18% rate in the previous week. Fifteen-year rates averaged 2.37% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.42%, shaking things up with slight decrease from last week’s 2.43%. Last year it was 3.11%.
“While the economy continues to grow, it has lost momentum over the last two months due to the current wave of new COVID cases that has led to weaker employment, lower spending and declining consumer confidence,” said Freddie Mac’s Chief Economist Sam Khater.
“Consequently, mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances. The net result for housing is that these low and stable rates allow consumers more time to find the homes they are looking to purchase.”
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit, published weekly since 1971.