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18 September . 2019

Mortgage Rates Tick Up, Still Below 3.6%

In spite of a four-week run where mortgage interest rates have been below 3.6%, the 30-year fixed-rate mortgage bumped up an average 0.5 point last week to an average of 3.49%. New home buyers benefit from a lower monthly payment, but also pay less interest over the life of the loan. Just a year ago, the 30-year fixed-rate mortgage was 4.6%, prompting more first-time homebuyers to reconsider purchasing a home.

Sam Khater, Freddie Mac’s chief economist, said, “The improved demand reflects the still healthy underlying consumer economic fundamentals such as a low unemployment rate, solid wage growth, and low mortgage rates. While there has been a material weakness in manufacturing and consistent trade uncertainty, so far, the American consumer has proved to be resilient with solid home purchase demand.”