Mortgage rates dip below 3%

For the first time in 50 years, mortgage rates sink below 3% as the 30-year fixed-rate mortgage averages 2.98% for the week ending July 16, 2020, according to the Freddie Mac Primary Mortgage Market Survey.

Compares with 3.03% in the previous week and 3.81% at this time a year ago.

" The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets," said Freddie Chief Economist Sam Khater.

However, the economic recovery is stagnating as virus cases increase, putting "many temporary layoffs at risk of ossifying into permanent job losses," he adds.

15-year FRM averages 2.48% vs. 2.51% in the prior week and 3.23% at this time a year ago.

5-year Treasury-indexed hybrid adjustable rate mortgage averages 3.06% vs. 3.02% in the prior week and 3.48% a year ago.