fourteen days ago mortgage interest rates dropped below 3% for the first time on document and following briefly inching their way back over that threshold past week interest levels have returned to under 3% once more. Based on information published from Freddie Mac, rates of interest on a 30-year loan are two.99%, maybe not quite the two.98% that they reached just two weeks ago but marginally better compared to 3.01% they depended on throughout the week between.
To get a 15-year loan the prices landed at two.51%, down from 2.54% a week and two.58% the week prior to that. This continuous fall, with no small uptick we saw with 30-year loans last week, is another indication of how willing lenders are to give loans to buyers a strong financial profile on their application.
“It’s Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20 percent above a year ago,” said Sam Khater, Freddie Mac’s Chief Economist, referring to the June data released from the National Association of REALTORS this week. “Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home prices heading into the late summer. Home sales should remain strong the next few months into the early fall.”
While demand is expected to stay strong, the applications for a mortgage did take a slight dip over the past week. According to data from the Mortgage Bankers Association, purchase applications decreased by 1.4% compared to the week before. However, this is still 21% higher than it was one year before so demand is very comfortably on the increase.
Refinance applications saw a tiny decrease, of .4%, which is still 121% higher compared to the same week a year ago. The biggest shift took place with FHA refinance applications, which decreased by almost 18%. This is because rates for FHA loans increased, by about 14 basis points, to 3.37%, according to MBA data. FHA loans typically make up about 10% of all loans, and that held true a past week when they were 9.6% of software (down from 10.8% the week earlier).