The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.06%, up from 3.02% last week but down from 3.48% a year ago. The index is up almost 9 per cent year to date, compared with a less than 1 per cent decline in the broad S&P 500 as a whole.
The 15-year fixed-rate mortgage averaged 2.48 percent, down slightly from last week's 2.51 percent average and down from last year's 3.23 percent average.
For the first time in 50 years, mortgage rates sink below 3% as the 30-year fixed-rate mortgage averages 2.98% for the week ending July 16, 2020, according to the Freddie Mac Primary Mortgage Market Survey.
The mortgage giant's weekly survey of rates found that the average interest rate on a 30-year, fixed-rate mortgage was 2.98 percent over the last seven days. It is the third consecutive week and the seventh time this year that rates on America's most popular home loan have hit a fresh low.
"Current homeowners as well as home buyers that lock in low rates might be reluctant to trade up to another house in future years if doing so also means trading up to a meaningfully higher rate", said Greg McBride, chief financial analyst at Bankrate.
"Our business continues to be very strong and we expect the next 12-18 months to be the best months in mortgage history", he said. It is also important if this country is going to its reverse unemployment trend, which will be one of the most important platforms in any presidential election year.The old adage is still true: "as real goes, so goes the economy where consumer confidence typically leads the way to economic well being". The number of agreed home sales has rebounded by 4% between early March and May.
Overall, Real Estate listing firm Zillow (NYSE:Z) expects that United States home prices will fall less than 1.7% in Y 2020 despite the steep slowdown in the economy, due in part to the positive effect of lower interest rates.
Have a healthy weekend, Keep the Faith!