Mortgage Rates Heading Lower
Bad news equals low rates, and good news for struggling homeowners.
Mortgage rates slipped lower for the second week in a row thanks to concerns about the direction of the economy after the release of the June jobs report, according to mortgage financier Freddie Mac.
The classic 30-year fixed-rate mortgage averaged 5.20 percent during the week ending July 9, down from 5.32 percent a week ago and 6.37 percent a year earlier.
It’s still a bit higher than its record low of 4.78 percent set back in April when the refinance boom was in full swing, but not by much.
The 15-year fixed rung in at 4.69 percent, down from 4.77 percent a week earlier and 5.91 percent a year ago.
The five-year ARM averaged 4.82 percent, down from 4.88 percent a week ago and 5.82 percent this time last year.
The one-year ARM dipped to 4.82 percent from 4.94 percent, and remains below its year-ago average of 5.17 percent.
The rates above are good for conforming loan amounts with at least a 20 percent down payment.
Rates on jumbo loans continue to price higher, around 6.50 percent for a 30-year fixed.
The lower rates are encouraging, and may signal a return to a lending bonanza, though it’s too early to tell if rates will continue to fall.
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