Rates for 30-year, fixed-rate mortgages hovered near record lows again this week. Freddie Mac’s chief economist encouraged lower-income homeowners to refinance.

MCLEAN, Va. – Freddie Mac’s Primary Mortgage Market Survey for this week finds that the average 30-year fixed-rate mortgage (FRM) was unchanged from last week’s average 2.73%. The rate hovered near record lows through January.

“Mortgage rates remained flat this week and near record lows, signifying an economy that continues to struggle,” says Sam Khater, Freddie Mac chief economist. “This rate environment is advantageous for those who are looking to refinance in order to strengthen their financial position.”

Khater says many upper-income homeowners refinanced their mortgages already to take advantage of lower monthly payments or faster payoffs, but not as many lower-income homeowners have done so – the ones “who could stand to benefit the most by lowering their monthly mortgage payment.”

Mortgage rates this week

  • A 30-year fixed-rate mortgage averaged 2.73% with an average 0.7 point for the week, unchanged from last week. A year ago, the 30-year FRM averaged 3.45%.
  • A 15-year fixed-rate mortgage averaged 2.21% with an average 0.6 point, up slightly from last week when it averaged 2.20%. A year ago, the 15-year FRM averaged 2.97%.
  • A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78% with an average 0.3 point, down from last week’s 2.80%. A year ago, the 5-year ARM averaged 3.32%.

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Author: kerrys