How Low Will Mortgage Interest Rates Go?

How low will average U.S. mortgage interest rates go? It's anybody's guess!

Recent turmoil in worldwide financial markets have pushed interest rates down in recent weeks to their lowest point in 2016 and just above all-time lows. 

At 3.41 percent the average 30-year, fixed-rate mortgage is only 10 basis points above its November 2012 all-time low, Freddie Mac reported when it released its weekly Primary Mortgage Market Survey on July 7, 2016. 

"Continuing fallout from the Brexit vote drove Treasury yields lower again this week," Freddie Mac chief economist Sean Becketti said. "The 30-year, fixed-rate mortgage followed Treasury yields, falling 7 basis points to 3.41 percent in this week's survey. Mortgage rates have now dropped 15 basis points over the past two weeks, leaving them only 10 basis points above the all-time low."

The average 3.41 percent 30-year mortgage interest rate, with an average 0.5 point, declined from 3.48 percent the previous week. The 30-year note was 4.04 percent during the same week last year. 

The 15-year mortgage, with an average 0.4 point, averaged 2.78 percent for the week ending July 7, 2016, down from 2.78 percent the previous week and 3.20 percent last year.