Freddie Mac released the results of its Primary Mortgage Market Survey on June 30, showing average fixed mortgage rates dropping to new 2016 lows in the wake of the Brexit vote. At 3.48 percent, the 30-year fixed-rate mortgage is only 17 basis points from its November 2012 all-time record low of 3.31 percent.
“In the wake of the Brexit vote, the yield on the 10-year U.S. Treasury bond plummeted 24 basis points,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate declined as well, but not by as much, falling 8 basis points to 3.48 percent.” The latest survey rate is the lowest since May 2013 and only 17 basis points above the all-time low recorded in November 2012, which means the extremely low mortgage rate should support solid home sales and refinancing volume this summer, Becketti says.
According to Freddie Mac:
- The 30-year fixed-rate mortgage averaged 3.48 percent—with an average 0.5 point for the week ending June 30—down from the previous week when it averaged 3.56 percent. A year ago at the same time, the 30-year fixed-rate mortgage averaged 4.08 percent.
- The 15-year fixed-rate mortgage averaged 2.78 percent—with an average 0.4 point—down from the previous week when it averaged 2.83 percent. A year ago at the same time, the 15-year FRM averaged 3.24 percent.
- The five-year Treasure-indexed hybrid adjustable-rate mortgage averaged 2.70 percent—with an average 0.5 point—down from the previous week when it averaged 2.74 percent. A year ago at the same time, the 5-year adjustable-rate mortgage averaged 2.99.
Note: Average commitment rates should be reported, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage, Freddie Mac states. Borrowers may still pay closing costs that aren’t included in the survey.