Freddie Mac posted the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) averaged 2.78% in July.
By the numbers:
– 30-Year Fixed-Rate Mortgage: Averaged 2.78% with an average 0.7 point for the week ending July 22, 2021, down from last week when it averaged 2.88%. A year ago at this time, the 30-year FRM averaged 3.01%.
– 15-Year Fixed-Rate Mortgage: Averaged 2.12% with an average 0.7 point, down from last week when it averaged 2.22%. A year ago at this time, the 15-year FRM averaged 2.54%.
– 5-Year Treasury-Indexed Hybrid Adjustable-Rate Mortgage (ARM): Averaged 2.49% with an average 0.4 point, up from last week when it averaged 2.47%. A year ago at this time, the 5-year ARM averaged 3.09%.
A resurgence of spiking COVID rates has been identified as a source for the rate decrease.
“Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth,” said Sam Khater, Freddie Mac’s chief economist. “While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of low rates due to low inventory and high prices.”
Khater continued, “However, these declining rates provide yet another opportunity for homeowners to save money on their monthly mortgage payment through a refinance.”