According to Freddie Mac's latest Primary Mortgage Market Survey, the 30-year fixed-rate mortgage rate in the U.S. averaged 3.55 percent, the lowest it has been since November 2016.
Sam Khater, Freddie Mac's chief economist, says, "The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years. Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, which is equivalent to about $140 each month."
"The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity," he continued.
Freddie Mac News Facts
30-year fixed-rate mortgage averaged 3.55 percent with an average 0.5 point for the week ending Aug 22, 2019, down from last week when it averaged 3.60 percent. A year ago at this time, the 30-year FRM averaged 4.51 percent.
15-year FRM averaged 3.03 percent with an average 0.5 point, down from last week when it averaged 3.07 percent. A year ago at this time, the 15-year FRM averaged 3.98 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent with an average 0.3 point, down from last week when it averaged 3.35 percent. A year ago at this time, the 5-year ARM averaged 3.82 percent.
International property consultant CBRE is reporting this week that global commercial real estate investment volume in Q4 of 2019, including entity-level deals, was nearly level (-0.5%) with Q4 2018, while full-year volume fell by 2% from 2018.
According to new research by Zillow, the total value of every home in the U.S. is $33.6 trillion, nearly as much as the GDP of the two largest global economies combined -- the U.S. ($20.5 trillion) and China ($13.6 trillion).
Based on research from Learnbonds.com indicates that U.S. mortgage debt is now the highest since the Great Depression in 2008. The outstanding US mortgage debt which has been growing steadily in recent years hit a record high of $15.8 trillion in Q3 2019.