Today's Mortgage Rates

Independence Day brings new record low mortgage rates to homebuyers and homeowners looking to refinance.

Freddie Mac reported today that the average offered rate for a conforming 30-year fixed-rate mortgage declined by six basis points (0.06%), easing to a new record low of 3.07%. Conforming 15-year FRMs also saw a decline in the average offered rate, with a three basis point (0.03%) fall dropping the most popular short-term mortgage to 2.56 percent. The initial fixed interest rate for a hybrid 5/1 ARM fell by eight one-hundredths of a percentage point, landing at an average rate of a flat 3 percent for the week.

Although the economic news has been brightening of late, even solid improvements cannot mask the fact that there is a deep hole out of which the economy must climb to get back to where it was just a few short months ago. In testimony and speeches this week, Fed Chairman Jay Powell and other Fed members expressed optimism at signs of improvement, but also expressed serious concerns about the prospects for continued recovery, given that the viral outbreak has flared anew. As long as those concerns persist (and it will likely be until either a vaccine is announced or so-called "herd immunity" for the virus is reached) there will continue to be more downward pressure on mortgage rates than not, regardless of how improved the near-term data may seem. At the moment, the outlook for rates over the next few days appears flat.

We track and discuss the economic conditions that affect mortgage rates and their impact on mortgage and housing markets and consumers in each week's MarketTrends newsletter. Read the most recent edition on HSH.com or subscribe for email delivery.