Mortgage Rates Tick Down As Affordability Declines

Freddie Mac's Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage averaged 2.98% for the week ending July 1, 2021.

“Economic growth remains steady and is bolstering more segments of the economy,” said Sam Khater, Freddie Mac’s chief economist. “Although low and stable mortgage rates have kept the housing market booming over recent months, a deterioration in affordability and for-sale inventory has led to a market slowdown.”

Affordability has been a major issue for the nation, even in states like Florida which is usually one of the more affordable markets. A recent report revealed that homebuyers in Florida are actually postponing their plans to purchase a home due to the increase in home prices.

The PMMS reported that the 15-year fixed-rate mortgage averaged 2.26%, down from last week's average of 2.34%. A year ago, the 15-year averaged 2.56%. Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.54%, up slightly from last week's average of 2.53%.