Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.65 percent, the lowest rate in the survey’s history which dates back to 1971.
“A new year, a new record low mortgage rate,” said Sam Khater, Freddie Mac’s chief economist. “Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”
News Facts
– 30-year fixed-rate mortgage averaged 2.65 percent with an average 0.7 point for the week ending Jan. 7, 2021, down from last week when it averaged 2.67 percent. A year ago at this time, the 30-year FRM averaged 3.64 percent.
– 15-year fixed-rate mortgage averaged 2.16 percent with an average 0.6 point, down slightly from last week when it averaged 2.17 percent. A year ago at this time, the 15-year FRM averaged 3.07 percent.
– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent with an average 0.3 point, up from last week when it averaged 2.71 percent. A year ago at this time, the 5-year ARM averaged 3.30 percent.
“A new year, a new record low mortgage rate,” said Sam Khater, Freddie Mac’s chief economist. “Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”
News Facts
– 30-year fixed-rate mortgage averaged 2.65 percent with an average 0.7 point for the week ending Jan. 7, 2021, down from last week when it averaged 2.67 percent. A year ago at this time, the 30-year FRM averaged 3.64 percent.
– 15-year fixed-rate mortgage averaged 2.16 percent with an average 0.6 point, down slightly from last week when it averaged 2.17 percent. A year ago at this time, the 15-year FRM averaged 3.07 percent.
– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent with an average 0.3 point, up from last week when it averaged 2.71 percent. A year ago at this time, the 5-year ARM averaged 3.30 percent.
