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 two.54% last week and 2.58% the week prior to that. This constant decrease, with no small uptick we watched 30-year loans a week, is just another indicator of how prepared lenders would be to provide loans to buyers having a solid financial profile in their own 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,” stated Sam Khater, Freddie Mac’s Chief Economist, speaking to the June data published from the National Association of REALTORS this past 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 remain strong, the software to get a mortgage failed to require a small dip over the last week. Based on statistics from the Mortgage Bankers Association, purchase applications decreased by 1.4% compared to the week before. Nonetheless, this remains 21% greater than it had been one year earlier so demand is quite comfortably on the growth.
Refinance software saw a very small reduction, of .4%, that is still 121% greater when compared with the identical week one year ago. The largest change happened with FHA refinance software, which diminished by nearly 18%. This is because prices for FHA loans improved, by roughly 14 basis points, to 3.37%, based on MBA data. FHA loans generally make up roughly 10% of most loans, and this held true last week if they were 9.6% of software (down from 10.8% per week before).