Above photo - David Paul Morris/Bloomberg via Getty Images
Mortgage rates dropped to lows not seen in nearly two year. This morning Freddie Mac announced the benchmark 30-year mortgage fell to 3.820%. The rate is from data collected as part of their weekly rate survey of lenders who sell mortgages to them.
There are $2 Trillion dollars’ worth of mortgages that are eligible for refinancing.
According to Mortgage Bankers Association the lower rates reflect to spike in mortgage activity for those refinancing. Unfortunately, the activity for those purchasing a property has held flat or declined. This could be due to many borrowers feeling priced out of participating in homeownership?
“Coming out of the Memorial Day holiday, and likely impacted by the financial market volatility caused by the trade tensions, purchase application volume declined for the week. Potential homebuyers may be more cautious given the heightened economic uncertainty.” Mike Fratantoni, MBA Senior Vice President and Chief Economist.
Here is a snapshot of this week’s rate survey:
- 30 year fixed – 3.820%
- 15 year fixed – 3.280%
- 5/1 ARM – 3.520%