Rates Take A Little Dip

Rates below 5%?

No need to squint or rub your eyes... you are reading that correctly! Mortgage rates dropped below 5% for a 30 year fixed-rate mortgage for the first time in months.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 4:

• 30-year fixed-rate mortgages: averaged 4.99%, with an average 0.8 point, dropping from last week’s 5.30% average. Last year at this time, 30-year rates averaged 2.77%.
• 15-year fixed-rate mortgages: averaged 4.26%, with an average 0.6 point, falling from last week’s 4.58% average. A year ago, 15-year rates averaged 2.10%.
• 5-year hybrid adjustable-rate mortgages: averaged 4.25%, with an average 0.3 point, dropping from last week’s 4.29% average. A year ago, 5-year ARMs averaged 2.40%.

Peaked Interest

Mortgage Bankers Association reported that mortgage applications increased for the first time in over a month.

The story continues to unfold, but a little relief is welcome!  The market is stabilizing, and that is really a good thing for all parties. Homes are still selling,  buyers are still buying,  and 5-ish% interest rates are all in all not bad.