Mortgage rates dip below 4 percent
Posted on Monday, August 3, 2015 at 10:43:04 AM
Mortgage rates dipped just below 4 percent for the first time since early June, following the release of some underwhelming housing reports and stock market uncertainty coming out of Asia.
The 30-year fixed-rate mortgage fell 6 basis points to 3.98 percent, according to Freddie Mac's Primary Mortgage Market Survey, released last Thursday. That's down from 4.04 percent a week prior and 4.12 percent a year ago. The government-sponsored enterprise's survey results indicate that rates will remain low in the near future.
The rates of other mortgage types dropped as well. For example, 15-year fixed rate mortgage rates fell from 3.21 percent to 3.17 percent. That's also down from 3.23 percent in the same week of 2014.
Prior to 2009, rates rarely dipped below 5 percent. However, they were historically low through the first half of 2015, and remain well below the 5 percent threshold.
Mortgage rates fell on news of the Chinese stock market's volatile week, as well as the release of a series of disappointing housing reports. With up-and-down global and domestic reports, the Federal Reserve has remained mum on when a rate hike will actually happen, according to the Washington Post.
Some experts still believe that this will come in September, ending a lengthy stretch of historically low mortgage rates implemented to help people qualify for residential financing and spur the housing market recovery.