The average 30-year, fixed-rate mortgage dropped from last week’s 2.77%. A Freddie Mac economist attributes it to a new administration and COVID-19 “malaise.”
MCLEAN, Va. – Freddie Mac’s mortgage survey this week found a slight drop in the 30-year, fixed-rate mortgage (FRM). It averaged 2.73% compared to last week’s 2.77%.
“As the market reacts to a new administration in Washington and COVID-19 driven economic malaise, mortgage rates continued to decrease this week, just slightly,” says Sam Khater, Freddie Mac’s chief economist. “Even as house prices increase at the fastest rate we’ve seen in years, competition to buy is strong, given the low inventory that exists across the country.”
Khater considers the low inventory of for-sale homes “an ongoing issue for the foreseeable future.”
The 2.73% average fixed-rate mortgage had an average 0.7 points. A year ago, the 30-year FRM averaged 3.51%.
The 15-year fixed-rate mortgage also fell marginally this week, average 2.20% with an average 0.7 points. One year ago, the 15-year FRM averaged 3%.
However, adjustable-rate mortgages remained stable this week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80% with an average 0.3 point – the same rate as last week. One year ago, the 5-year ARM averaged 3.24%.
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Author: marlam