Mortgage Rates Remain Flat This Week
According to the latest data from Freddie Mac, the 30-year fixed rate averages 2.87% with economic growth and the acceleration in inflation moderating.
Mortgage rates remained flat this week, with the 30-year fixed rate averaging 2.87%, according to new data from Freddie Mac.
This week’s numbers represent a slight decrease from last year’s rate at this time, which was 2.93% for a 30-year fixed. The 15-year fixed rate averaged 2.18%, up slightly from the week prior when it averaged 2.17%. At this tie last year, the 15-year rate was 2.42%.
“Economic growth and the acceleration in inflation have moderated in the last month, giving the markets comfort and leading to a stabilization in mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into the fall, home purchase demand is stable, home sales remain firm and above pre-pandemic levels, and inventory of unsold homes is tight but improving modestly. These factors will allow for home price pressures to ease over the remainder of the year.”
The rate for five-year Treasury-indexed hybrid adjustable rate mortgages was 2.43% this week, up slightly from the week prior but a decrease over the rate from this time last year (2.93%).
According to Mortgage Bankers Association data, mortgage applications decreased 2.4% in one week, based on data from the week of August 23. The Market Composite Index, which measures mortgage loan application volume, decreased 2.4%. The Refinance Index decreased 4% from the week prior, but was 2% higher than the same time a year ago.
“There was little change in mortgage rates last week, with the 30-year fixed remaining at 3.03%,” says Joel Kan, associate VP of economic and industry forecasting at MBA. “Despite low rates, refinance applications declined, with some borrowers still waiting for rates to drop even lower.”
Housing demand continues to outpace available inventory, according to Kan.
“Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels,” he said. “Even with a slight increase, purchase activity hit its highest level since early July, as applications for conventional and government loans increased. Home purchase activity continues to be dominated by higher price tiers of the market, with the purchase average loan size now at $396,500, the highest average in five weeks.”