The Freddie Mac weekly data on home mortgage rates as of July 11 put the 30-year fixed rate unchanged at 3.75%, a full 5 basis points below the 3.80% of June. The 15-year fixed rate moved up 4 basis points to 3.22%, but are 2 basis points below the 3.20% of June. The rate for a 5/1-year ARM was at 3.46% in the week, narrowly below the 3.48% in June.
Present levels of mortgage rates are tempting for consumers to enter the housing market and for those who currently have a mortgage to refinance. Activity in the housing market can fade after a rush in the spring month, but July may prove to be a solid month for homebuying. Inventories continue limited for the more sought-after entry level housing. This should encourage homebuilders to add to stocks of smaller single-family homes and townhouses. Consumers are facing competition for available units in the existing home market, and this should help keep prices on the rise, albeit at a somewhat slower pace than in 2018.
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