For the week ending August 6, Freddie Mac announced that 30-year fixed rates fell to 2.88% from 2.99% the week before. The average for 15-year loans decreased to 2.44% and the average for five-year ARMs fell to 2.90%. A year ago, 30-year fixed rates averaged 3.60%, almost .75% higher than today. “The resilience of the housing market continues as rates on home loans hit another all-time low, giving potential buyers more purchasing power and strengthening demand. 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,” 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.