Source: Freddie Mac
US mortgage rates declined for the fourth straight week to mark the lowest level in over five months, as COVID-19 concerns hit economic growth. VNQ is down 1.03%, while SCHH is down 1.07%.
- The 30-year fixed-rate mortgage averaged 2.78% for the week ending July 22. This is the lowest since February 11’s 2.73%.
- The 15-year fixed-rate mortgage stood at 2.12%. This compares with 2.54% a year ago and is the lowest so far for the year.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.49%. This is higher than the 2.47% the previous week but lower than 3.09% a year ago.
- Freddie Mac Chief Economist Sam Khater attributed the downtrend to concerns over the spread of the Delta variant of the COVID-19 pandemic.
- Khater noted that Treasury yields and mortgage rates have decreased, but these are offset by low inventory and high prices.
- Khater said the declining rates open an opportunity for homeowners to save money on their monthly mortgage payments through a refinance.