ABBA First has continued to lead the mortgage marketplace in both low rate and excellent service over the past several months since the COVID19 pandemic made its’ ugly presence known. We’ve seen the market go up and down with rates moving in tandem based on several factors, some of which were never usually considered before. For the week ending July 23, Freddie Mac announced that 30-year fixed rates rose to 3.01% from 2.98% the week before. The overwhelming requests for new loans has caused a bottleneck with lender’s “turn-times” slowing down. To offset the influx of new loans which in turn would allow lenders to meet the consumer’s demand, banks simply raise their mortgage interest rates . The average for 15-year loans increased to 2.54% and the average for five-year ARMs rose to 3.09%. A year ago, 30-year fixed rates averaged 3.75%, approximately 0.75% higher than today. “While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop. In the short-term, this means the demand will continue on the back of near record low rates on home loans. However, the most recent consumer spending data has been pointing to slow growth since mid-June. The concern is that the pause in economic activity will cause unemployment to remain elevated which will lead to longer-term labor market distress,” said Sam Khater, Chief Economist, Freddie Mac.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.