Mortgage Rates Have Been Below 4% for Seven Months

• July 14, 2016

by UrbanTurf Staff

Mortgage rates remained steady this week after heading down toward record lows a few days ago.

On Thursday, Freddie Mac reported 3.42 percent with an average 0.5 point as the average for a 30-year mortgage. Rates rose just one basis point from last week, and still sit near record lows set back in 2012.

In a statement, Freddie Mac’s Sean Becketti describes what has been going on with interest rates:

“We describe the last few weeks as A Tale of Two Rates. Immediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows. This week, markets stabilized and the 10-year Treasury yield rebounded sharply. In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield. This week, the 30-year fixed rate barely budged, rising just one basis point to 3.42 percent. This pattern suggests that mortgage rates are likely to remain low throughout the summer.”

Long-term mortgage rates have now been below 4 percent since the end of 2015.

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/mortgage_rates_have_been_below_4_for_seven_months/11469