Mortgage Rates Drop to Another All-Time Low
June 19, 2020
The 30-year fixed-rate mortgage set a new record again this week as rates averaged 3.13%, the lowest average rate in Freddie Mac’s records, which date back to 1971.
The previous low for the 30-year fixed-rate mortgage was set just a few weeks ago at the end of May, averaging 3.15%.
“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many home buyers in the buying mood.”
That said, Khater cautions that it will be difficult to sustain the momentum in demand as unsold inventory is at near record lows entering the pandemic and has dropped even lower since then.
Freddie Mac reports the following national averages with mortgage rates for the week ending June 18:
- 30-year fixed-rate mortgages: averaged 3.13%, with an average 0.8 point, falling from last week’s 3.21% average. Last year at this time, 30-year rates averaged 3.84%.
- 15-year fixed-rate mortgages: averaged 2.58%, with an average 0.8 point, falling from last week’s 2.62% average. A year ago, 15-year rates averaged 3.25%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.09%, with an average 0.4 point, falling from last week’s 3.10% average. A year ago, 5-year ARMs averaged 3.48%.
Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.
Updated: July 10, 2020