The Freddie Mac fixed rates for mortgages unwound the increases of the past week or two while the rate for ARMs was about unchanged.
The 30-year fixed rate fell 6 basis points to 3.75% as of July 25, reversing the increase from the prior week. The average for July now stands at 3.77%, the lowest since 3.77% in November 2016.
The 15-year fixed rate was down 5 basis points to 3.18%, erasing the increase in the prior two weeks. For July to-date, the rate averages 3.20%, the lowest since 3.20% in October 2017.
The rate for a 5/1-year ARM dipped 1 basis point to 3.47%, the same as the month-to-date average. The rate is the lowest since 3.47% in January 2018.
Altogether, mortgage interest rates are at levels that will continue to encourage consumers to buy homes, especially since it appears that the supply of homes for sale is starting to skew to smaller units that are more attractive and affordable for first-time homebuyers. When July data on home sales is reported, it could well be firmer than usual in the early summer.
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