15-Year Fixed-Rate Mortgages Reach Record Low

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Borrowers can still take advantage of some of the lowest mortgage rates of all time. For the fifth consecutive week, the 30-year fixed-rate mortgage has remained below 3%. Also, the 15-year fixed-rate mortgage averaged 2.10% this week, an all-time low, Freddie Mac reported.

“As the economy works to get back to its pre-pandemic self, the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time,” said Sam Khater, Freddie Mac’s chief economist.

In 2019, mortgage rates averaged 3.94%, 4.54% in 2018, and more than 6% in 2008. That said, “expect mortgage rates to modestly rise in the following months as most of the economic indicators will start to stabilize,” Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, said on the association’s Economists’ Outlook blog. Lawrence Yun, NAR’s chief economist, is predicting the 30-year fixed-rate mortgage to increase to 3.3% by the end of the year and average 3.6% in 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 29:

  • 30-year fixed-rate mortgages: averaged 2.80%, with an average 0.7 point, rising from last week’s 2.78% average. Last year at this time, 30-year rates averaged 2.99%.
  • 15-year fixed-rate mortgages: averaged 2.10%, with an average 0.7 point, dropping from last week’s 2.12% average. A year ago, 15-year rates averaged 2.51%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.45%, with an average 0.3 point, falling from last week’s 2.49% average. A year ago, 5-year ARMs averaged 2.94%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.