Mortgage rates haven’t been this stable since the fall of 2016. Rates did inch up this week, but only slightly and are still offering prospective buyers a window of opportunity, says Sam Khater, Freddie Mac’s chief economist.
“The 30-year fixed-rate mortgage barely inched up this week, continuing the summer trend of essentially being flat,” says Khater. “While sales and price growth have softened these last few months, this leveling of rates may be helping more buyers reach the market. Purchase mortgage applications this week were once again modestly above year-ago levels.”
The recent slowdown in price appreciation in several markets, mixed with these steady mortgage rates, is “good news” for many prospective buyers who may have been priced out earlier this year, Khater says.
“Given the strength of the economy, it is possible for home sales to pick up even more before year’s end,” Khater says. “The key factor will be if affordably priced inventory increases enough to continue this recent trend of cooling price appreciation.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 30:
- 30-year fixed-rate mortgages: averaged 4.52 percent, with an average 0.5 point, rising from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.82 percent.
- 15-year fixed-rate mortgages: averaged 3.97 percent, with an average 0.5 point, falling from last week’s 3.98 percent average. A year ago, 15-year rates averaged 3.12 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.85 percent, with an average 0.3 point, rising from last week’s 3.82 percent average. A year ago, 5-year ARMs averaged 3.14 percent.
Source:
“Mortgage Rates Tick Up,” Freddie Mac (Aug. 30, 2018)
