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Mortgage Rates Drop To All-Time Low

Mortgage rates, or interest rates on home loans, dropped to the lowest level in record, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.13 percent for the week ending June 18, 2020, down from 3.21 percent last week. A year ago at this time, the average rate was 3.84 percent.

The 15-year FRM this week averaged 2.58 percent, down from 2.62 percent last week. A year ago at this time, the 15-year FRM averaged 3.25 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.09 percent, down from 3.10 percent last week. It was 3.48 percent a year ago.

"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," said Sam Khater, Freddie Mac's Chief Economist. "However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then."

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