Mortgage Rates Decline to 2016 Low

hamilton-zanze June 20, 2016

According to Freddie Mac, U.S. mortgage rates declined to their lowest point in 2016, at 3.54% for the week ending June 16. Rates were at 4% last year. Because of the historically low rates, U.S. home sales are expected to remain strong.

“The 10-year Treasury yield continued its free fall this week as global risks and expectations for the Fed’s June meeting drove investors to the safety of government bonds,” said Sean Becketti, Freddie Mac chief economist. “The 30-year mortgage rate responded by falling 6 basis points for the second straight week to 3.54% — yet another low for 2016. Wednesday’s Fed decision to once again stand pat on rates and growing anticipation of the U.K.’s upcoming European Union referendum will make it difficult for Treasury yields and — more importantly — mortgage rates to substantially rise in the upcoming weeks.”