Lower mortgage rates are proving to be a boon for home shoppers this summer. The 30-year fixed-rate loan has stayed near a 3.8% average for the third consecutive week, after consistent declines in late spring.
“While the continued drop in mortgage rates has paused, home buyer demand has not,” says Sam Khater, Freddie Mac’s chief economist. “This is evident in increased purchase activity and loan amounts, indicating that home buyers still have the willingness and capacity to purchase homes. Today’s low rates, strong job market, solid wage growth, and consumer confidence are typically important drivers of home sales.”
Freddie Mac reports the following national averages with mortgage rates for the week ending June 20:
- 30-year fixed-rate mortgages: averaged 3.84%, with an average 0.5 point, up from last week’s 3.82% average. Last year at this time, 30-year rates averaged 4.57%.
- 15-year fixed-rate mortgages: averaged 3.25%, with an average 0.4 point, falling from last week’s 3.26% average. A year ago, 15-year rates averaged 4.04%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.48%, with an average 0.4 point, falling from last week’s 3.51% average. A year ago, 5-year ARMs averaged 3.83%.
Source: Freddie Mac
