Freddie Mac reported mortgage interest rates little changed week-over-week. As of August 15, the 30-year fixed rate was 3.60%, the same as in the prior week. The 15-year rate was 3.07%, up a scan 2 basis points from a week ago. The 5/1-year ARM was down to 3.35% as of August 15 from 3.36% a week earlier.
The average for August for a 30-year fixed is at 3.60%, its lowest since 3.47% in October 2016, nearly three years ago. The 15-year fixed rate is at 3.06%, the lowest since 3.03% in November 2016. The 5/1-year ARM rate is at 3.35%, the lowest since 3.24% in November 2017.
There is anecdotal evidence that home shopping has slowed in early August, perhaps after some pent up demand was used up in earlier months. However, consumers with higher rate mortgage are going to continue to refinance — and perhaps take out some equity for other purposes that will go back into the economy? And the rates may coax out some of the more reluctant potential homebuyers while supplies of homes are more plentiful.
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