U.S. Mortgage Rates Decline to 3-Year Low in August

Freddie Mac | August 26, 2019

According to Freddie Macs latest Primary Mortgage Market Survey, the 30-year fixed-rate mortgage rate in the U.S. averaged 3.55 percent, the lowest it has been since November 2016. Sam Khater, Freddie Macs chief economist, says, "The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years. Households that refinanced in the second quarter of 2019 will save an average of $1,700 a year, which is equivalent to about $140 each month."

Spotlight

The first quarter of 2016 was an economic roller coaster for most asset classes, and real estate was not spared the wild ride. At the start of the year, muddled economic data and lack of policy direction out of China sent Asian markets into a downturn.Confusion over the magnitude of the slowdown in China jarred the oil markets, which in turn caused disruption in the credit markets. The financial markets pursued a risk off strategy and the U.S. 10-year yields fell from 2.70% to 1.66%.

Spotlight

The first quarter of 2016 was an economic roller coaster for most asset classes, and real estate was not spared the wild ride. At the start of the year, muddled economic data and lack of policy direction out of China sent Asian markets into a downturn.Confusion over the magnitude of the slowdown in China jarred the oil markets, which in turn caused disruption in the credit markets. The financial markets pursued a risk off strategy and the U.S. 10-year yields fell from 2.70% to 1.66%.

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