A slow by steady increase in average mortgage rates appears to have slowed this week, with the average 30-year, fixed-rate loan at 3.18% compared to last week’s 3.17%.
MCLEAN, Va. – Freddie Mac’s Primary Mortgage Market Survey for this week found little change in rates compared to last week, with the 30-year fixed-rate mortgage (FRM) averaging 3.18 percent.
“Although mortgage rates remain low, we’re beginning to see a pullback by those looking to enter the housing market,” says Sam Khater, Freddie Mac chief economist. “In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today.”
While demand has dropped, however, the pre-pandemic demand used as a baseline for a drop was already high. It simply increased even more during the pandemic, likely due to low mortgage rates.
“We even see that purchase demand is diminished today as compared to late May and early June of 2020, when mortgage rates were the same level,” Khater adds. “This is confirmation that while purchase demand remains strong, the marginal buyer is feeling the affordability squeeze resulting from the increases in mortgage rates and home prices we’ve experienced in recent months.”
Average mortgage rates for the week of April 1
- The 30-year fixed-rate mortgage averaged 3.18%, with an average 0.7 point for the week ending April 1, up from last week’s 3.17%. A year ago, the 30-year FRM averaged 3.33%.
- The 15-year fixed-rate mortgage averaged 2.45% with an average 0.6 point, unchanged from last week. A year ago, the 15-year FRM averaged 2.82%.
- A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84% with an average 0.3 point, also unchanged compared to last week. A year ago, the 5-year ARM averaged 3.40%.
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