Freddie Mac: Brexit Aftermath Pushed Mortgage Rates Lower

Posted by Patrick Barnard on June 30, 2016 No Comments
Categories : Residential Mortgage

Mortgage rates dropped to new lows in the wake of the Brexit vote, according to Freddie Mac’s Primary Mortgage Market Survey.

For the week ended June 30, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.48%, only 17 basis points from the all-time record low of 3.31% in November 2012. The previous week, the average rate for a 30-year FRM was 3.56%. A year ago at this time, the 30-year FRM averaged 4.08%.

The average rate for a 15-year FRM was 2.78%, down from 2.83%. A year ago at this time, the 15-year FRM averaged 3.24%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.70%, down from 2.74%. A year ago, the five-year ARM averaged 2.99%.

“In the wake of the Brexit vote, the yield on the 10-year U.S. Treasury bond plummeted 24 basis points,” says Sean Becketti, chief economist for Freddie Mac, in a release. “The 30-year mortgage rate declined, as well, but not by as much, falling eight basis points to 3.48 percent. This week’s survey rate is the lowest since May 2013 and only 17 basis points above the all-time low recorded in November 2012. This extremely low mortgage rate should support solid home sales and refinancing volume this summer.”

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