How Much Lower Can Mortgage Rates Go?


The 30-year fixed-rate mortgage is edging closer each week to the 3% mark. Freddie Mac reported that the 30-year rate averaged 3.03% this week, the lowest since the government-sponsored enterprise began tracking such data in 1971. Last week, the 30-year rate hit 3.07%, a record at the time. “The summer is heating up as record low mortgage rates continue to spur homebuyer demand,” says Sam Khater, Freddie Mac’s chief economist. “However, it remains to be seen whether the demand will continue if COVID-19 cases rise to the point that it hinders economic growth.”

Freddie Mac reports the following national averages for the week ending July 9:

  • 30-year fixed-rate mortgages: averaged 3.03%, with an average 0.8 point, falling from last week’s previous record low of 3.07%. Last year at this time, 30-year rates averaged 3.75%.
  • 15-year fixed-rate mortgages: averaged 2.51%, with an average 0.8 point, falling from last week’s 2.56% average. A year ago, 15-year rates averaged 3.22%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.02%, with an average 0.3 point, rising slightly from last week’s 3% average. A year ago, 5-year ARMs averaged 3.46%.

Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.

Source: Freddie Mac