Mortgage Rates Return to a Nearly a 50-year Low

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending May 28th, 2020. The PMMS shows that 30-year fixed-mortgage rate averaged 3.15% with an average 0.8 point, down from last week when it averaged 3.24%. A year ago, at this time, the 30-year FRM averaged 3.99%. The 15-year fixed-mortgage rate averaged 2.62% with an average 0.7 point, down from last week when it averaged 2.70% percent. A year ago, at this time, the 15-year FRM averaged 3.46%. Freddie Mac’s Chief Economist Sam Khater, said in prepared remarks that, “The 30-year fixed-rate mortgage has again hit the lowest level in our survey’s nearly 50-year history, breaking the record for the third time in just the last few months. These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35% year-over-year decline in mid-April to an 8% increase as of last week—a remarkable turnaround given the sharp contraction in economic activity. Additionally, refinance activity remains elevated and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year. This means a broader base of borrowers are taking advantage of the record low rate environment, which will benefit the economy.”


FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Mortgage Rates Hit Another All-Time Low