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U.S. Mortgage Rates Drop Below 4%

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The average rate for a 30-year fixed mortgage fell this week to 3.98 percent from 4.04 percent last week, reports The Chicago Tribune. The rate for a 15-year mortgage is down from 3.21 percent to 3.17 percent.

These rates are from the Primary Mortgage Market Survey, which were released Thursday by the Federal Home Loan Mortgage Corporation, or Freddie Mac, which surveys lenders across the country at the beginning of every week to calculate the average mortgage rates.

According to USA Today, the report marks the first time the average has been below 4 percent since early June. The low rates that have continued since a trending low for the first half of 2015 suggest that mortgages will stay at historically low rates for the immediate future.

The survey showed low mortgage rates across the board:

  • 15-year fixed rate mortgage rates were at 3.17 percent, down from 3.21 percent last week and 3.23 percent a year ago.
  • 5-year Treasury-indexed, adjustable rate mortgage rates were at 2.95 percent, down from 2.97 percent last week and 3.01 percent a year ago.
  • 1-year Treasury-indexed, adjustable rate mortgage rates were at 2.52 percent, down from 2.54 percent. Rates were at 2.38 percent in the year-ago period.

Lower mortgage rates don’t always equate a healthier market for home sales.  “Coming into this week, existing home sales for June (…) suggested a stronger tone in the housing market,” said Sean Becketti, chief economist at Freddie Mac.

Coming into this week, existing home sales for June (…) suggested a stronger tone in the housing market. However this week brought nothing but bad — or at least weaker-than-expected — news.

The U.S. housing market jumped in June as new home building permits and groundbreakings increased; this in comparison to last year.

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