Based on Freddie Mac's latest Primary Mortgage Market Survey, after three weeks of holding fairly steady, the average U.S. mortgage rate ticked up in mid-July, 2019.
Sam Khater, Freddie Mac's chief economist, says, "Mortgage rates moved higher after remaining at around the same level for about three weeks. The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short term interest rates, which should provide support for business and investor sentiment."
"Despite this slight increase in rates, homebuyers are taking advantage of the multi-year low rates in droves, which is evident in the consistently higher refinance and purchase application volumes. The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year," he said.
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 3.81 percent with an average 0.6 point for the week ending July 18, 2019, up from last week when it averaged 3.75 percent. A year ago at this time, the 30-year FRM averaged 4.52 percent.
15-year FRM averaged 3.23 percent with an average 0.5 point, up from last week when it averaged 3.22 percent. A year ago at this time, the 15-year FRM averaged 4.0 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48 percent with an average 0.4 point, up from last week when it averaged 3.46 percent. A year ago at this time, the 5-year ARM averaged 3.87 percent.
According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes fell 6.7 percent to a seasonally adjusted annual rate of 673,000 units in April 2019 after a sharp upwardly revised March 2019 report.
Based on new data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 3, 2019, mortgage applications in the U.S. increased 2.7 percent from one week earlier.