Mortgage Rates Hit All-Time Record Low Heading Into Holiday Weekend

[james.hendrickson]

From last Monday - a bit late, but better late than never:

File this under: mortgage rates about to get really, really low.

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Mortgage Rates Hit All-Time Record Low Heading Into Holiday Weekend

MCLEAN, Va., July 02, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.07 percent, the lowest rate in the survey’s history dating back to 1971.

“Mortgage rates continue to slowly drift downward with a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3 percent later this year,” said Sam Khater, Freddie Mac’s Chief Economist. “On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks with modest declines in consumer spending and a pullback in purchase activity.”

News Facts

• 30-year fixed-rate mortgage averaged 3.07 percent with an average 0.8 point for the week ending July 2, 2020, down from 3.13 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.
• 15-year fixed-rate mortgage averaged 2.56 percent with an average 0.8 point, down slightly from last week when it averaged 2.59 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.00 percent with an average 0.3 point, down slightly from last week when it averaged 3.08 percent. A year ago at this time, the 5-year ARM averaged 3.45 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

[bjl584]

The issue is supply.
Mortgage rates might be zero, but there aren't many existing houses (typical starter homes) for sale.

People in more rural areas can cash in right now.
There is a trend right now of folks wanting to move away from the cities.
Couple that with an anemic supply of houses, and a seller can name their price.

[AdmRuss]

I'm in total shock. A year ago at this time, the average was 4.17%.

[GoodLiving]

When I was a kid, mortgages were double digits. When I had a mortgage, I have lost count how many times I refinanced for a reduced rate. I think my first mortgage was an arm at 4.75%

[disneysteve]

[QUOTE=GoodLiving;n718633When I had a mortgage, I have lost count how many times I refinanced for a reduced rate. I think my first mortgage was an arm at 4.75%[/QUOTE]

Our first mortgage (1994) was right around 8.5%.

[bjl584]

I talked to my bank a few weeks ago
i can roll out of my 20 yr to a 15yr and keep my payment the same.
It would knock 3 years off the repayment schedule and save me around $50K over the life of the loan
Only thing stopping me are the closing costs, around 3K
Still pondering over doing it

[disneysteve]

It would knock 3 years off the repayment schedule and save me around $50K over the life of the loan
Only thing stopping me are the closing costs, around 3K

So you would spend 3K to save 50K. What's the downside?