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Little Movement Expected for Mortgage Rates in July

When it comes to money, who doesn’t like breaking records?

In June, the interest rate on the 30-year fixed-rate mortgage hovered near record lows. What’s more, it’s probably not moving in July, according to NerdWallet.

The interest rate on the 30-year fixed-rate mortgage remained near record lows in June and is likely to stay there in July.

In the first four weeks of June, the 30-year fixed averaged 3.33% APR—just below May’s 3.37% and April’s 3.36% APR. In the four-year history of NerdWallet's daily rate survey, June’s average was the lowest on record.

April through June, following the intervention of the Federal Reserve to simmer and lower rates, remarkably, mortgage rates were anchored from April through June.

The latest developments, including information on loan and payment relief, coping with and how to most effectively manage your personal finances, are tracked on NerdWallet's coronavirus resources page.

While the rebound in the economy’s uneven, the housing market’s one segment showing strength, said Sam Khater, Freddie Mac’s Chief Economist. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009.

Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood.” That said, it will be difficult to sustain the momentum in demand as unsold inventory was at near-record lows coming into the pandemic and it has only dropped since then.”

During the week of June 18, 2020, the average rate for a 30-year fixed-rate mortgage last week was 3.21% and was 3.84%. The average 15-year fixed-rate mortgage was 3.25% last year.

According to the Mortgage Bankers Association, the week concluding June 19, the latest available data, mortgage refinance applications were at their lowest level in three weeks. Most mortgage refinancers primarily are motivated by securing a lower interest rate, tapping home equity with a cash-out refi, to purge mortgage insurance or to mor swiftly pay it off, are among other reasons to refinance a mortgage.

About Author: Chuck Green

Chuck Green has contributed to the Wall Street Journal, Washington Post, Los Angeles Times, San Francisco Chronicle, Chicago Tribune and others covering various industries, including real estate, business and banking, technology, and sports

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