Mortgage rates continued to decline in the latest Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC).
The 30-year fixed-rate mortgage averaged 6.77% as of June 26, down from last week when it averaged 6.81%. A year ago at this time, it averaged 6.86%.
The 15-year fixed-rate mortgage averaged 5.89%, down from last week when it averaged 5.96%. A year ago at this time, it averaged 6.16%.
“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April. Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market,” said Sam Khater, Freddie Mac’s chief economist.
that is not good, when the prices go up on property the interest should go down to coordinated with keeping the market going smoothly.. instead the interest rate kept going up with the house prices etc. not good .. that slows down everything and put our market in a bad situation..now, they are lower the interest very little. not keeping up with the market, who ever is running this .. does not understand how our market work and should not be in charge of it.. thanks.. June
I have to agree, prices of new homes are high and rates are higher than buyers are interested in jumping into, which has lowed the new home market to a stand still. Rates ned to drop a couple of points to get the market flowing again…
Very little decline to speak of. This .09 rate decline equates to about $6/100,000 for a 30 year loan amortization. June is right, things should historically play out this way—low rates/higher prices, higher rates/lower prices. Our current housing problem runs deep and is unprecedented. Housing shortage and high demand for starter homes, Boomers and investors not letting go of many of these financed with ridiculously low interest rates. Sadly, unless we have another crash I don’t see anything getting better.
Unacceptable and total Bullshit.
Decline?? Really?
The Fed Chairman is hurting millions of people with his stupidity and stubbornness in not doing a drastic drop in the rates!!!
FIRE THIS JERK IMMEDIATELY!!
Just because you don’t like something doesn’t mean its incorrect. He has 1000x the knowledge and education in the matter. Grow up.
Franco is right. The fed chair is just hurting the American homebuyers because they cannot pay the monthly amount required to buy even a lower priced home. The average price for a mortgage on a $400,000 house with taxes under $10,000 is over $2500 per month. The Fed is deliberately keeping the rates high to hurt Trump and make it look like he’s not helping the American people.
Trump is NOT helping the American people, i have no idea why you would think he is helping anyone other than himself.
In my humble opinion, Chairman Powell is right in his optimistic view of the economy and inflation. Inflation is not under controlled. There’s far too many unknowns, in terms of world events and global economy. Prices for anything only know one way-up! When the new tariff kick in it will cause inflation to get higher for several more years. Lowering the bank rate will only allow a buying frenzy to give the economy a shot in the arm. It will be short lived and deplete the “ barely” keeping up with post Covid supply demand. Mortgage rates are not tied to the discount rate, but do eventually follow a decline in mortgage rates. However, forget about 3% interest rate of the past. It would take a recession or depression for that to happen. The housing market is in correction as usual but favoring the buyer for a change. In fact, there will never be enough homes to keep up with demand. Hence, you see prices coming down modestly as they should; resale home are over priced. Let the mortgage rate react to the real estate market by keeping mortgage rates at a reasonable level. I see 6% being the new norm given what the home prices are today.
The cpi for the months since Trump took office is below the Feb target of 2%. Ten year treasury is often the rate used by mortgage lenders. Fed can only lower short term rates.
Decline? That’s nothing.. what a bunch of BS. Home prices are still high. Sellers still think it’s a sellers mkt & buyers are waiting for rates to go below 6% – hence mkt in many areas are in limbo.
One thing you can always count on about the FED decisions and that is they are consistent. Always late and mostly wrong. That is the good news. The bad news is, accountable to no one.
I bought my first house in 1984 with the seller proviing four points to secure a 12% VA mortgage. When I got into Real Estate in 1987 rates were still close to 10% though dropping. The average home price in that market was about $120,000 IIRC. In my opinion the price of housing is too high for the average income of American blue collar workers who have failed to realize real gains in their income since the time I bought my first house due to inflationary easy money policies. We’ve enjoyed some very low interest rates in the last couple of decades but that was part of what was fueling the inflation. In my experience anything under 8% was good. Which is worse? High mortgage rates or high inflation? Powell may indeed prove to be merely a petty partisan player, just screwing with the current administration but even so if the rate of inflation is severely diminshed then it will be worth it, better yet would be a roll back in prices. However, in my opinion the Federal Reserve in all its history has never displayed any perspicacity in its judgements, more often they lurch from one screw up to another. They failed to let the 2008 downturn effect the change that was needed in the industry, they merely slapped a bandaid on the problem and opened the flood gates of money then again during Covid. I believe that most of the problems in our industry is a result of the government attemtptin to micro manage things that are beyond their control. To expect them to improve it now is not warranted.
Oh my goodness people take a breath!!! The interest rates at 2.5-3% are not normal – I personally had a mortgage in early 80’s of 15.9!!! We were thrilled when it reached 9.5%
The folk who lend the mortgage funds are taking a chance on your buyers – with a return of 2,3,4% – they are only keeping up with inflation and should be able to make something taking the risks with the current market!!