Freddie Mac says there is room for rates to decline in the coming weeks as mortgage spreads remain high
Mortgage rates continued to stay low for the past four weeks as a result of the measures the government has to take to buoy the economy during the coronavirus recession, according to Freddie Mac.
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30%, giving potential buyers a good reason to continue shopping even amid the pandemic,” Freddie Mac Chief Economist Sam Khater said.
The interest rate for the 30-year mortgage saw a four-basis point dip from a week ago, down to 3.24% Thursday. The 30-year fixed-rate mortgage averaged 4.06% a year ago at this time.
Meanwhile, the 15-year fixed-rate mortgage was two basis points lower than last week's average of 2.72%, down to 2.70%. The 15-year FRM was 3.51% last year at this time.
Lastly, the 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped from 3.18% to 3.17% and was below the previous year's average of 3.68%.
“As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago. Going forward, mortgage rates have room to decline as mortgage spreads remain elevated," Khater said.
