Real Estate

Near Historic Lows, Mortgage Rates See Little Movement In Late July

Mortgage rates held steady near month’s end, with interest rates on 15-year fixed rate loans remaining at all-time lows, according to Freddie Mac’s weekly lender survey.

Mortgage rates for 15-year fixed rate loans remained at all-time lows this week as average rates for 30-year loans rose by 2 basis points, according to Freddie Mac’s weekly lender survey.

“As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time,” Freddie Mac Chief Economist Sam Khater said in a statement. “Largely due to the current environment, the 30-year fixed-rate remains below three percent for the fifth consecutive week while the 15-year fixed-rate hits another record low.”

For the week ending July 29, Freddie Mac’s weekly Primary Mortgage Market Survey reported average rates for the following types of loans:

  • For 30-year fixed-rate mortgages, rates averaged 2.80 percent with an average 0.7 point, up from 2.78 percent last week and lower than 2.99 percent a year ago. Rates for 30-year loans hit an all-time low of 2.65 percent in records dating to 1971 during the week ending Jan. 7, 2021.
  • Rates on 15-year fixed-rate mortgages averaged 2.10 percent with an average 0.7 point, lower than 2.12 percent last week and down from 2.51 percent a year ago. The mark kept rates for 15-year fixed rate mortgages loans at all-time lows in records dating to 1991, replacing the previous low set July 22, 2021, when rates averaged 2.12 percent.
  • For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.45 percent with an average 0.3 point, slightly lower than 2.49 percent last week and 2.94 percent a year ago. Rates on 5-year ARM loans are at their lowest levels since at least 2005, remaining below a previous low point of 2.56 percent during the week ending May 2, 2013.

Freddie Mac’s survey of conventional, conforming home purchase loans assumes borrowers put 20 percent down and have excellent credit. Borrowers with lower credit scores or who make smaller down payments may be offered different rates.

Rates have come down since February and March, when fears of inflation made mortgages temporarily more expensive for borrowers. Since then, however, the rates for 30-year loans have hovered around or below 3 percent

Investors are watching the Federal Reserve’s actions closely. If the central bank decides to buy fewer Treasurys and mortgage bonds in an effort to curb inflation, rates may rise again. 

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