Freddie Mac: Mortgage Rates Hit a New Record Low in January 7th Report
Freddie Mac 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.”
– 30-year fixed-rate mortgage averaged 2.65 percent with an average 0.7 point for the week ending January 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.
The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
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Source: Freddie Mac