Benchmark mortgage rate remains low in US housing market

WASHINGTON, Aug. 15 (Xinhua) -- Mortgage rate remained near "historical low" in the United States last week, Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.


A man sleeps on the street near Hollywood Boulevard on June 06, 2019 in Los Angeles, California. (Photo: VCG)

For the week ending Aug. 15, 30-year fixed-rate mortgage (FRM) in the United States remained at 3.6 percent.

The benchmark mortgage rate 30-year FRM was significantly lower than the previous year. For the same period one year ago, the 30-year FRM averaged 4.53 percent.

Besides, Freddie Mac noted that 15-year FRM this week increased to 3.07 percent, which was higher than previous week's reading of 3.05 percent. The rate of 15-year FRM was also lower over the year and the figure was 4.01 percent for the same period a year ago.

"The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week," said Sam Khater, chief economist of Freddie Mac.

Freddie Mac, a corporation founded by the U.S. Congress, aims at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.