According to Freddie Mac's latest Primary Mortgage Market Survey for mid-August 2018, U.S. mortgage rates decreased for the third straight week.
Sam Khater, Freddie Mac's chief economist, says mortgage rates inched backward this week to their lowest level since mid-April. "Backed by very strong consumer spending, the economy is red-hot this month, which is in turn rippling through the financial markets and driving equities higher," he said. "Unfortunately, the same cannot be said about the housing market, where it appears sales activity crested in late 2017. Existing-home sales have now stepped back annually for the fifth straight month, and purchase mortgage applications this week were barely above year ago levels."
Added Khater, "It is clear affordability constraints have cooled the housing market, especially in expensive coastal markets. Many metro areas desperately need more new and existing affordable inventory to break out of this slump."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.5 point for the week ending August 23, 2018, down from last week when it averaged 4.53 percent. A year ago at this time, the 30-year FRM averaged 3.86 percent.
15-year FRM this week averaged 3.98 percent with an average 0.5 point, down from last week when it averaged 4.01 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.82 percent with an average 0.3 point, down from last week when it with an average 3.87 percent. A year ago at this time, the 5-year ARM averaged 3.17 percent.
U.S. mortgage applications for new home purchases increased 8.2 percent compared to September 2017. Compared to August 2018, applications decreased by 9 percent. This change does not include any adjustment for typical seasonal patterns.
According to the Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey for the week ending September 28, 2018, U.S. mortgage applications remained unchanged from one week earlier.
According to the recently released CBRE U.S. Seniors Housing & Care Investor Survey, the appetite for senior housing acquisitions in the U.S. remains strong, with nearly two-thirds of investors planning to increase the size of their portfolios over the next 12 months.