Mortgage Rates Drop to a New Record Low

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 18th, 2020. The PMMS shows that 30-year fixed-mortgage rate averaged 3.13% with an average 0.8 point, down from last week when it averaged 3.21%. A year ago, at this time, the 30-year FRM averaged 3.84%. The 15-year fixed-mortgage rate averaged 2.58% with an average 0.8 point, down from last week when it averaged 2.62%. A year ago, at this time, the 15-year FRM averaged 3.25%. Freddie Mac’s Chief Economist Sam Khater, said in prepared remarks that, “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”