Mortgage Rates Fall to 7-Week Low
Aug 18th, 2017 @ 2:00 PM by Amber Nelson
Long-term U.S. mortgage rates fell to a two-month low this week, following a week of political and economic uncertainty that pushed investors to the safety of bonds.
Accoridng to mortgage giant Freddie Mac, the average 30-year fixed-rate, conventional mortgage carried a rate of 3.89 percent with 0.4 average points, during the week ended August 17, 2017, dipping slightly from 3.90 percent the previous week. Rates have not been this low in over seven weeks, since the week of June 29, 2017 when the average was 3.88 percent. One year ago, the average rate was 3.43 percent.
The 15-year fixed-rate conventional also fell, slipping to an average of 3.16 percent with 0.5 points, down from 3.18 percent the week before. One year ago, the average rate was much lower still at 2.74 percent.
Rates on 5-year Treasury-indexed adjustable rate mortgages (ARMs) rose in the latest week, inching up to 3.16 percent with 0.4 points, up from 3.14 percent the previous week and up from 2.76 percent a year ago.
“Mortgage rates are continuing to hold at low levels amidst ongoing economic uncertainty,” said Freddie Mac chief economist Sean Becketti. Part of that uncertaintly could have come from increased concern about the U.S. relationship to North Korea as well as violent racial tensions in Virginia.
The recent terrorist attack in Spain as well as President Trump’s move to break up two separate corporate advisory councils could spook investors even more and push rates lower next week.
Mortgage rates have been in a steady downward trajectory since the middle of March 2017. The Federal Reserve has raised its target rate three times in the past year, but without major inflation, it is unclear if they will need to raise it any more before the end of 2017.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.