Home Industry News Mortgage rates drop to another record low

Mortgage rates drop to another record low

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Mortgage rates drop to another record low
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MCLEAN, Va.— Freddie Mac released the results of its Primary Mortgage Market Survey Thursday, showing that the 30-year fixed-rate mortgage (FRM) averaged 2.88%, the lowest rate in the survey’s history dating back to 1971.

“The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” said Sam Khater, Freddie Mac’s chief economist. “We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”

• 30-year fixed-rate mortgage averaged 2.88% with an average 0.8 point for the week ending August 6, 2020, down from last week when it averaged 2.99%. A year ago at this time, the 30-year FRM averaged 3.60%.

• 15-year fixed-rate mortgage averaged 2.44% with an average 0.8 point, down from last week when it averaged 2.51%. A year ago at this time, the 15-year FRM averaged 3.05%.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90% with an average 0.4 point, down from last week when it averaged 2.94%. A year ago at this time, the 5-year ARM averaged 3.36%.