Freddie Mac reported the 30-year fixed rate mortgage at 3.07% as of July 2, the lowest on record. That brought the average for June to around 3.14%, a record low for monthly rates. The 15-year fixed rate mortgage was at 2.56% for the week and the June average was 2.59%. These were also record lows for the week and month. The 5/1-year ARM rate was down to 3.00% for the week and 3.07% for the June average which were just above record lows.
Rates like this are going to keep consumers in the housing market and possibly spark another wave of refinancings. Recession and economic uncertainty will not outweigh the appeal of capturing a mortgage rate that can significantly improve home affordability. If existing housing stock cannot meet demand, builders will find ready buyers for projects at all levels of construction – planned, started, and completed. Residential investment could be one of the bright spots in an economy struggling during the COVID-19 pandemic.
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