Mortgage Rates Hit New 2016 Low

You can blame it on the British voters, or blame it on domestic uncertainties, or blame it on whomever or whatever—average fixed mortgage rates have hit a new low for this year.

According to Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending July 7, the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent, down from last week when it averaged 3.48 percent. This product is 10 basis points away from its lowest point of 3.31 percent, set back in November 2012.

The 15-year FRM this week averaged 2.74 percent, down from last week when it averaged 2.78 percent, while the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.68 percent, below last week’s 2.70 percent average. Sean Becketti, chief economist at Freddie Mac, pointed a finger of blame across the Atlantic.

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