Mortgage Rates Ridiculously Low, Freddie Mac Confirms

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(RTTNews.com) – Mortgage rates are continuing to hold at low levels amidst ongoing economic uncertainty, mortgage provider Freddie Mac announced Thursday.

The 30-year fixed-rate mortgage averaged 3.89% with an average 0.4 point during the week ending August 17, down from 3.90% in the prior week. It is now just one basis point above its 2017 low. A year ago at this time, the 30-year FRM averaged 3.43 percent.

The 15-year fixed-rate mortgage averaged 3.16%, down from 3.18% last week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16%, up from last week when it averaged 3.14 percent.

Separately, Freddie Mac announced that housing starts were lower than anticipated during the second quarter. While starts should improve in the second half of 2017, expect them to remain well below their long run average at around 1.24 million.

The company expects mortgage rates to stay below 4 percent for the remainder of the year, while home sales should reach 6.2 million units for 2017, a three percent increase over the 2016 pace. However, home sales would be much higher if inventory was not so tight.

Further, house price appreciation is expected to average 6.3 percent for full year 2017 on high demand and low inventory.

Freddie Mac appointed Stacey Goodman as executive vice president and chief information officer on September 25. Goodman will be a member of the senior operating committee and will report directly to CEO Donald H. Layton.

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