Interest rates on 30-year mortgages fell further as bond markets reacted to the delta variant’s potential impact on the global economy.

Mortgage rates dipped further in the early days of August, with average rates for 30-year loans falling 3 basis points, according to Freddie Mac’s weekly lender survey.

“With global market uncertainty surrounding the Delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit,” Freddie Mac Chief Economist Sam Khater said in a statement. “The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate or even purchase a new home.”

For the week ending Aug. 5, Freddie Mac’s weekly Primary Mortgage Market Survey reported average rates for the following types of loans:

  • For 30-year fixed-rate mortgages, rates averaged 2.77 percent with an average 0.6 point, down from 2.80 percent last week and lower than 2.88 percent a year ago. Rates for 30-year loans hit an all-time low of 2.65 percent during the week ending Jan. 7, 2021, according to records dating to 1971.
  • Rates on 15-year fixed-rate mortgages averaged 2.10 percent with an average 0.6 point, matching last week’s historic low and down from a rate of 2.44 percent a year ago. The mark kept rates for 15-year fixed rate mortgage loans at all-time lows in records dating to 1991, replacing the previous low set July 22, 2021.
  • For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.40 percent with an average 0.4 point, down from 2.45 percent last week and 2.90 percent a year ago. Rates on 5-year ARM loans are at their lowest levels since at least 2005, remaining below a previous low point of 2.56 percent during the week ending May 2, 2013.

Freddie Mac’s weekly survey of home purchase loans assumes a 20 percent down payment and a borrower with excellent credit. Borrowers with lower credit scores may see higher interest rates.

Rates have come down since February and March, when fears of inflation made mortgages temporarily more expensive for borrowers. Since then, however, the rates for 30-year loans have hovered around or below 3 percent. 

Investors are watching the Federal Reserve’s actions closely. If the central bank decides to buy fewer Treasury bills and mortgage bonds in an effort to curb inflation, rates may rise again. 

Email Daniel Houston

homebuying | lenders
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×