The extremely low rates continue to fuel Americans' desire to own a home
After recording a record low the week before, the 30-year mortgage rate hit rock bottom again last week, according to the Freddie Mac Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) hit 3.03% – its lowest rate in the survey's history. The FRM was down from the previous week's average of 3.07% and lower than last year's level of 3.22%.
And the ultra-low rates are stirring up homebuying activity this summer, according to Freddie Mac Chief Economist Sam Khater.
"The summer is heating up as record-low mortgage rates continue to spur homebuyer demand," Khater said. "However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth."
The 15-year fixed-rate mortgage also fell from last week, down to an average of 2.51% from 2.56%. At this time last year, the 15-year FRM averaged 3.22%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM), on the other hand, edged up from 3% to 3.02%. A year ago, the 5-year ARM was 3.46%.