The average rate for a 30-year fixed-rate mortgage was unchanged for the week ending July 11, remaining at 3.75%, according to Freddie Mac’s latest Primary Mortgage Market Survey.
“While rates have moderated, we’re still at nearly three-year lows, which is good news for buyers looking to purchase a home before school starts,” said Sam Khater, Freddie Mac’s Chief Economist. “The recent stabilization in mortgage rates reflects modestly improving U.S. economic data and a more accommodative tone from the Federal Reserve to respond to the rising downside economic risk from trade tensions and soft global economic data. On the housing front, the latest weekly purchase application data suggests homebuyer demand continues to rise, which is consistent with the slowly improving real estate data from the last two months.”
The 30-year fixed rate mortgage in July 2018 averaged 4.53%. Fifteen-year fixed rate mortgages came in at 3.22% for the week ending July 11, which is a slight increase of 0.5%, but down year-over-year from 4.02%.
Although mortgage rates are at historic lows, CNBC reported that mortgage applications fell 2.4% week-over-week.
Additionally, a report by Redfin found that there is fewer competition for homes on the market, as just 12% of offers faced a bidding war in June 2019, which is a 52% decrease year-over-year.
The report added that despite the cooling, San Francisco, California, was the competitive metro in June, with 28% of offers written by Redfin agents faced a bidding war. Redfin states this was down 65% year-over-year, and 35% from May 2019.
“With low mortgage interest rates luring more homebuyers off the sidelines as supply dwindles, we’re likely to see competition pick back up, especially for the most affordable homes and neighborhoods, where inventory is limited and buyers are most rate-sensitive,” said Redfin Chief Economist Daryl Fairweather. “At Redfin, we’ve been seeing increases in the numbers of homebuyers starting their searches and going on home tours following the latest mortgage rate drops.”
Miami, Florida, was home to the least competitive market with no offers submitted by Redfin agents faced competition. Of the offers made in Dallas, Texas, 5.3% faced competition, and 6.3% of offers in San Jose, California, faced competition.