Homebuyers Rush to Capitalize on Historically Low Mortgage Rates

Historically low mortgage rates are enticing homebuyers across all parts of the U.S. to breath life in the housing market, amid a global pandemic and nationwide protests, according to the most recent figures by Freddie Mac.

According to the Mortgage Bankers Association’s seasonally adjusted index, mortgage applications to purchase a home rose 5% for the week and were 18% higher than a year ago. As the coronavirus outbreak was surging six weeks ago, applications by homebuyers were down 35% annually.

30-year fixed-rate mortgage averaged 3.18 percent with an average 0.7 point for the week ending June 4, 2020, up from last week’s historic low when it averaged 3.15 percent. Last year this time the 30-year average was 3.82%.

15-year fixed-rate mortgage averaged 2.62 percent with an average 0.7 point, unchanged from last week. This average has fallen from 3.28% a year ago.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.10 percent with an average 0.4 point, down from last week when it averaged 3.13 percent. A year ago at this time, the 5-year ARM averaged 3.52 percent.