Mortgage Rates Fall Below 3%

(RTTNews) - Mortgage rates, or interest rates on home loans, continued its decline and reached sub-3 percent mark, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 2.98 percent for the week ending July 16, 2020, down from 3.03 compared to last week. A year ago at this time, the average rate was 3.81 percent.

The 15-year FRM this week averaged 2.48 percent, down from 2.51 percent last week. A year ago at this time, the 15-year FRM averaged 3.23 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.06 percent, up from 3.02 percent last week. It was 3.48 percent a year ago.

"Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets," said Sam Khater, Freddie Mac's Chief Economist. "However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses."

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