Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS), showing the 30-year fixed-rate mortgage (FRM) averaged 2.65 percent, the lowest rate in the survey’s history which dates back to 1971, according to a press release.
“A new year, a new record low mortgage rate,” Freddie Mac Chief Economist Sam Khater said in the release. “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,” Khater added.
Highlighted facts from the survey include:
- A 30-year fixed-rate mortgage averaged 2.65 percent with an average 0.7 point for the week ending Jan. 7, 2021, down from the previous week when it averaged 2.67 percent. A year earlier, the 30-year FRM averaged 3.64 percent.
- A 15-year fixed-rate mortgage averaged 2.16 percent with an average 0.6 point, down slightly from the previous week when it averaged 2.17 percent. A year earlier, the 15-year FRM averaged 3.07 percent.
- A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent with an average 0.3 point, up from the previous week when it averaged 2.71 percent. A year earlier, the 5-year ARM averaged 3.30 percent.