• Jun 30, 2019 Mortgage rates approaching new record lows
    Gary Sandler
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    Published 30 June 2019

    On April 2, 1971, the Federal National Mortgage Association (Freddie Mac) began keeping track of mortgage rates. On that day and every Thursday since, Freddie has released the results of their survey to the public. At the time the interest charged on a 30-year fixed mortgage was 7.33 percent.

    On June 20 of this year, which was the release date of the most recent report prior to submission of this column, the rate stood at 3.84 percent. One week earlier the rate was 3.82 percent. The numbers revealed that rates on 30-year fixed mortgages have dropped to within roughly one-third of a percent of their all-time low of 3.50 percent posted in March 2013.

    It wasn’t until Aug. 30, 1991 that Freddie began keeping track of the 15-year fixed rate. On that day the rate was 8.77 percent. Today, the rate stands at 3.25 percent. The all-time low for the 15-year fixed hit 2.61 percent on April 25, 2013, positioning today’s rate approximately two-thirds of a percent above the record-setting low.

    The recent decision by the Federal Reserve to not raise the federal funds rate, along with their comment that a future rate reduction may be in the offing, could result in mortgage rates declining even more in the near term. The federal funds rate is the interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight. While the fed funds rate mainly affects short term and adjustable rates, it can affect mortgage rates as well. Lower mortgage rates generally translate to a rise in the number of home sales.

    See you at closing.

    Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces. He can be reached at (575) 642-2292 or Gary@GarySandler.com

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      Gary Sandler