Rates Continue to Fall

August 27, 2019
low-rates
Last week rates hit another low.

 

For the week ending August 22, Freddie Mac announced that 30-year fixed rates fell to 3.55% from 3.60% the week before. The average for 15-year loans decreased to 3.03% and the average for five-year ARMs moved down to 3.32%. A year ago, 30-year fixed rates averaged 4.51%, almost 1.0% higher than today. "The drop in rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years. Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, which is equivalent to about $140 each month. The benefit of lower rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity,” said Sam Khater, Chief Economist, Freddie Mac.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Current Indices for Adjustable Rate Mortgages 
Updated August 23, 2019

 

Daily Value

Monthly Value

 

August 22

July

6-month Treasury Security

1.91%

2.08%

1-year Treasury Security

1.79%

1.96%

3-year Treasury Security

1.53%

1.80%

5-year Treasury Security

1.50%

1.83%

10-year Treasury Security

1.62%

2.06%

12-month LIBOR

 

2.189% (July)

12-month MTA

 

2.447% (July)

11th District Cost of Funds

 

1.141% (June)

Prime Rate

 

5.25% (July)