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

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Sam Khater, Freddie Mac's 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."

"The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity," he continued.

Freddie Mac News Facts

• 30-year fixed-rate mortgage averaged 3.55 percent with an average 0.5 point for the week ending Aug 22, 2019, down from last week when it averaged 3.60 percent. A year ago at this time, the 30-year FRM averaged 4.51 percent.

• 15-year FRM averaged 3.03 percent with an average 0.5 point, down from last week when it averaged 3.07 percent. A year ago at this time, the 15-year FRM averaged 3.98 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent with an average 0.3 point, down from last week when it averaged 3.35 percent. A year ago at this time, the 5-year ARM averaged 3.82 percent.