Mortgage Rates Decrease

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.96% for the week ending May 6, 2021, down from 2.98% the previous week. A year ago, this rate was 3.26%. The 15-year fixed-rate mortgage averaged 2.30%, slightly down from 2.31% last week, while the 5-year Treasury-indexed ARM rose to 2.70% from 2.64%. Freddie Mac's Chief Economist noted that low rates and improving economic conditions benefit both homebuyers and homeowners looking to refinance, supporting increased consumer spending and economic growth.

Positive

• 30-year fixed-rate mortgage decreased to 2.96%, providing better affordability for homebuyers.
• Improving economic conditions support consumer income and spending.

Negative

• None.

MCLEAN, Va., May 06, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.96 percent.

“Mortgage rates have remained under three percent for three consecutive weeks,” said Sam Khater, Freddie Mac’s Chief Economist. “Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”

News Facts

• 30-year fixed-rate mortgage averaged 2.96 percent with an average 0.6 point for the week ending May 6, 2021, down from last week when it averaged 2.98 percent. A year ago at this time, the 30-year FRM averaged 3.26 percent.
• 15-year fixed-rate mortgage averaged 2.30 percent with an average 0.6 point, down from last week when it averaged 2.31 percent. A year ago at this time, the 15-year FRM averaged 2.73 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.70 percent with an average 0.3 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 5-year ARM averaged 3.14 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.

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ff2b0ba7-c778-4d4c-9d0a-f65518c8b760

FAQ

What is the current average rate for a 30-year fixed-rate mortgage according to Freddie Mac?

As of May 6, 2021, the average rate for a 30-year fixed-rate mortgage is 2.96%.

How did the 30-year mortgage rate change from the previous week?

The 30-year mortgage rate decreased from 2.98% to 2.96% for the week ending May 6, 2021.

What is the average rate for a 15-year fixed-rate mortgage as of May 6, 2021?

The average rate for a 15-year fixed-rate mortgage is 2.30% as of May 6, 2021.

What impact do low mortgage rates have on homebuyers and homeowners?

Low mortgage rates benefit homebuyers by improving affordability and assist homeowners looking to refinance, increasing their monthly cash flow.

How does the current mortgage rate compare to last year?

Last year, the 30-year fixed-rate mortgage averaged 3.26%, indicating a significant decrease in borrowing costs.