Mortgage Rates Drop Below 3% Again

After a week above 3 percent, mortgage rates in the United States dropped below that line for the second time in history as the 30-year fixed-rate mortgage averaged 2.99 percent, Freddie Mac announced Thursday.

“It’s Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20 percent above a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home prices heading into the late summer. Home sales should remain strong the next few months into the early fall.”

Freddie’s Primary Mortgage Market Survey found:

  • The 30-year fixed-rate mortgage averaged 2.99 percent with an average 0.8 point for the week ending July 30, down from 3.01 percent last week and 3.75 percent a year ago. 
  • The 15-year fixed-rate mortgage averaged 2.51 percent with an average 0.7 point, down from last week’s 2.54 percent and last year’s 3.20 percent
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.94 percent with an average 0.4 point, down from last week’s 3.09 percent and last year’s 3.46 percent.

See the full report here.