Mortgage Rates in the U.S. Continue to Fall

July 9, 2018 | Blog

U.S. mortgage rates dropped again this week marking drops in five of the last six weeks, according to Freddie Mac.

The 30-year fixed mortgage averaged 4.52 percent for the week ending July 5, down from 4.55 percent the previous week. A year ago, mortgage rates stood at 3.96 percent.

Low mortgage rates have aided U.S. home sales, as well as the refinance market.

Sam Khater, Freddie Mac’s chief economist, says after a rapid increase throughout most of the spring, mortgage rates have now declined in five of the past six weeks.

“The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” Khater said. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

Favorable mortgage rates also have propelled Miami Valley home sales. After setting records last year, Dayton-area home sales have been strong again in 2018.

However, May home sales fell 2 percent with fewer available homes to purchase, according to Dayton Realtors.

The historic low for 30-year rates was 3.31 percent in November 2012.

Story Source: Biz Journals