Mortgage Rates Fall

According to a recent MReport, mortgage rates fall to an all time low. Data from Freddie Mac’s Primary Mortgage Market Survey revealed that while the economy has been rocky since the COVID-19 outbreak, the housing market is on the road to recovery. The survey concluded that mortgage rates hit a new all-time low, as the average 30-year fixed rate mortgage reached 3.13%. Sam Khater, Freddie Mac’s Chief Economist, stated “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. 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 homebuyers in the buying mood”. Unfortunately, Khater also stated that it may be difficult to keep the momentum going because unsold inventory continues to drop. The average rate for a 30-year fixed-rate mortgage in the beginning of June was 3.21% and was 3.84% during the week of June 18, 2020. The average 15-year fixed-rate mortgage was 2.58%, which is less than last year’s average by over 1%.

WHAT ELSE DID THEY FIND?

The Chief Economist of Realtor.com, Danielle Hale said that mortgage rates have shifted a lot throughout the spring, but these lower rates are bringing buyers back into the market. Additionally, Hale stated, “ “Despite the continued volatility, the stock market has been driving higher this week, fueled by investor optimism that economic reopening will be successful and bridge the gap until a vaccine or better treatments for COVID-19 are developed. On the other hand, the Fed has adopted a cautious, supportive posture about how the economic recovery will progress. This Fed support is helping to prevent rates from rising too quickly. In fact, the Fed’s recent economic projections show that the typical member expects near zero Fed funds rates through 2022.” Hale added that the housing market could potentially play a huge role in economic recovery. Realtors.com housing market recovery index shows that buyers and asking prices have made a full recovery, but sellers and time on market still need to improve.

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