Mortgage rates hit all-time low

Sub-3% rate possible as Freddie Mac sees pause in economic rebound

TRD MIAMI /
Jul.July 02, 2020 05:00 PM
The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2 (iStock)

The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2 (iStock)

The downward slide in mortgage rates produced a new milestone this week, according to Freddie Mac’s latest primary mortgage market survey.

The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2, down 0.06 percentage points from the week before and down 0.68 points year-over-year. It is the lowest rate on record since the survey began in 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,” Freddie Mac chief economist Sam Khater said in a statement.

“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,” he added.

The 15-year fixed-rate mortgage declined slightly to 2.56 percent, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3 percent.

The 30-year and 15-year fixed-rate mortgages both had an average 0.8 point for the week, meaning consumers on average paid 0.8 percent of the loan amount in discount and origination fees.

Since the Federal Reserve slashed its benchmark interest rate to near zero in mid-March, the gap between the 10-year Treasury yield and the 30-year fixed-rate mortgage average has been historically large. Economists have attributed this to challenges facing the retail mortgage market, which are expected to fade in the coming months.

Falling rates have led to a boom in home loan applications in recent months, reaching an 11-year high in mid-June before falling off amid doubts about the economic recovery.


Related Articles

arrow_forward_ios
Clifford Asness and 321 Ocean (Getty, Douglas Elliman)

Billionaire hedge funder sells South Beach PH at a loss

Billionaire hedge funder sells South Beach PH at a loss
(iStock)

SoFla construction starts plummet 54% in June

SoFla construction starts plummet 54% in June
Faena Hotel Miami Beach and Eau Palm Beach (Faena, Eau Palm Beach)

Faena Hotel, Eau Palm Beach Resort among latest to lay off hundreds

Faena Hotel, Eau Palm Beach Resort among latest to lay off hundreds
Ron DeSantis (Getty)

DeSantis extends residential foreclosure and eviction ban another month

DeSantis extends residential foreclosure and eviction ban another month
CEO Sean Daly (iStock)

Miami-based title startup Expetitle completes seed fundraising

Miami-based title startup Expetitle completes seed fundraising
Map of priciest condo sales and Oceana Bal Harbour (Google Maps)

Oceana Bal Harbour sale tops Miami condo sales last week

Oceana Bal Harbour sale tops Miami condo sales last week
1744 South Ocean Boulevard (Credit: Google Maps and iStock)

Oceanfront Palm Beach estate trades for $51M

Oceanfront Palm Beach estate trades for $51M
Dr. Walter Okoroanyanwu, Angelo Bianco and Jim Carr 

Doctor’s orders: developers increasingly tap medical experts, amenities

Doctor’s orders: developers increasingly tap medical experts, amenities
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...