Mortgage Rates Decline Again

After a rapid increase throughout most of the spring, mortgage rates have now declined in five of the past six weeks.  Mortgage rates dipped for the fifth time in six weeks according to mortgage giant Freddie Mac’s most recent Primary Mortgage Market Survey. The rate for a 30-year fixed mortgage averaged 4.52 percent for the week ending in July 5, down from last week’s 4.55 percent average but up significantly from the 3.96 percent average a year ago.

The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” said Sam Khater, Freddie Mac’s chief economist. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

“Although the current economic expansion is in its 10th year, residential single-family real estate was initially slow to recover,” Khater added. “Now, backed by the demographic tailwind provided by millennials reaching the peak age to buy their first home, the housing market should have some room to grow going forward.”

Uncertainty surrounding tariffs from the Trump administration has more than likely helped keep mortgage rates steady for the time being.