Skip to main content

Mortgage Rates Hit 2.98%

Navi Persaud
Jul 16, 2020
Wooden house in shopping cart and downward arrow. Photo credit: Yalanskyi

The 30-year fixed-rate mortgage hit an average of 2.98% according to Freddie Mac's Primary Mortgage Market Survey. This marks an historic low in the survey's history.

“Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” said Sam Khater, Freddie Mac’s chief economist. “However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses.”

Barry Habib, founder and CEO of MBS Highway, said the signs of this historic low rate were first visible a year ago. He kept that belief even when rates spiked a little bit recently.
He feels the natural rate right now should be 2.58% but there is no desire on the part of originators to sell loans at that rate when they can’t keep up with current demand. “Why sell it for cheaper?” he said.
Mortgage rates could go even lower, Habib speculated. He sees 10-year Treasury yields approaching 50 basis points. The 30-year treasury yield numbers are at 1.3% now and he sees them dropping to .75%.

Habib, though, sees interest rates rising for the second half of 2021. The numbers will still be good but the refinance business will drop off. He said originators should plan on more purchase mortgages, as well as cash-out refinances. “Make sure everyone is trained in cash-out refinances,” he advised.

The 15-year fixed-rate mortgage averaged 2.48%, down from 2.51% last week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.06, a slight increase from the 3.02% figure from the previous week.

On Tuesday afternoon, FannieMae said rates below 3% wouldn't be seen until the end of 2020. Officials later explained that data came from June interest-rate data and is a projection of monthly and quarterly averages. It does not preclude what is described as short-term volatility.

Read more from the FreddieMac report.

Freddie Mac Primary Mortgage Market Survey 7/16/20

Jul 16, 2020
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021