Freddie Mac recently announced that the 30-year fixed mortgage rate (FRM) averaged 2.77%, according to its Primary Mortgage Market Survey® (PMMS®).
Mortgage details:
– 30-year fixed-rate mortgage averaged 2.77% with an average 0.6 point for the week ending Aug. 5, 2021, down from last week when it averaged 2.80%. A year ago at this time, the 30-year FRM averaged 2.88%
– 15-year fixed-rate mortgage averaged 2.10% with an average 0.6 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.44%.
– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.40% with an average 0.4 point, down from last week when it averaged 2.45%. A year ago at this time, the 5-year ARM averaged 2.90%.
The takeaway:
Delta’s sway on the economy is still uncertain; however, 42% say COVID is still impacting their business, according to an RISMedia survey. Experts are eyeing the Fed’s next move to gauge overall sentiment regarding market recovery, which will likely influence the future of mortgage rates.
“With global market uncertainty surrounding the Delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit,” said Sam Khater, chief economist at Freddie Mac. “The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate or even purchase a new home.”
“Investors are uncertain about how impactful resurgent Delta-variant COVID cases will be, which is helping to keep rates low. Economic growth continued in the second quarter, albeit shy of expectations,” said realtor.com® Chief Economist Danielle Hale. “And while mask-wearing is making a comeback thanks to CDC guidance and local advisories, health experts don’t expect widely mandated lockdowns like we saw in 2020. This wait-and-see approach tends to lead investors to favor bonds, which means lower rates in the near term.”
