Freddie Mac: Brexit Pushed Mortgage Rates To New Lows

Posted by Patrick Barnard on July 07, 2016 No Comments
Categories : Residential Mortgage

Mortgage rates fell further this week in the wake of the Brexit vote.

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.41%, just 10 basis points from its all-time record low of 3.31% in November 2012.

The previous week, the average rate for a 30-year FRM was 3.48%. A year ago at this time, it was 4.04%, according to the report.

Rates for other types of mortgages also fell. The average rate for a 15-year FRM was 2.74%, down from 2.78% the previous week. A year ago at this time, the 15-year FRM averaged 3.20%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.68%, down from 2.70%. A year ago, the five-year ARM averaged 2.93%.

“Continuing fallout from the Brexit vote drove Treasury yields lower again this week. The 30-year, fixed-rate mortgage followed Treasury yields, falling seven basis points to 3.41 percent in this week’s survey,” says Sean Becketti, chief economist for Freddie Mac, in a release. “Mortgage rates have now dropped 15 basis points over the past two weeks, leaving them only 10 basis points above the all-time low.”

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