Household mortgage rates were largely stable and even slightly declined, as investor shakes for economic slowdown and geopolitics continued to keep bonds attractive.
The 30-year mortgage with a fixed interest rate averaged 3.82% at week 1
The 15-year mortgage with a fixed interest rate is 3.26% on average, compared with 3.28%. The 5-year hybrid mortgage, adjusted by the Treasury, with an adjustable interest rate, averaged 3.51%, down 1 basis point.
Read: The mood of the housing market reaches a 5-year peak: a good omen for sales?
Fixed rate mortgages follow the 10-year US Treasury path
which collapsed as investors are increasingly worried about the health of the economy and the potential consequences of the long-running trade war. At the same time, inflation has remained. Markets and some analysts now predict that the Federal Reserve will cut interest rates this year.
Lower rates touch the housing market in unexpected ways. Demand for housing loans is so strong that the mortgage lender's margin has become positive for the first time in nearly three years.
See: The average mortgage with an adjustable rate is almost $ 700,000. Here's what that tells us.
This is according to Fannie Mae's second-quarter mortgage lender's study published Wednesday. This study also found that, for the first time in more than two years, most of the creditors reported or said they expect the volumes of refinancing to increase.
Whether mortgage lenders are profitable or not, it's not just a concern in the industry. It is often the case that lenders lower their standards when they become more hungry for income, including the buoyancy of the housing bubble a decade ago. Fannie Mae said in the publication of the lender's study that "meaningful ease of lending standards is a thing of the past." revert ratings