After hitting a record not seen since 2011, the average 30-year, fixed mortgage rate this week withdrew, down to 4.56 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed mortgage and average five-year, Treasury-indexed hybrid adjustable rates slipped, as well, down to 4.06 percent and 3.80 percent, respectively.
“The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields,” says Sam Khater, chief economist at Freddie Mac. “Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continued to trend higher from a year ago.
“Extremely low inventory conditions in most markets are preventing sales from breaking out, while also keeping price growth elevated,” Khater says. “Even if rates climb closer to 5 percent, sales have room to grow more, but only if current supply levels start increasing more meaningfully.”
Source: Freddie Mac
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