Mortgage Rates Continue to Decline

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey on May 13, 2021, showing a decline in the average 30-year fixed-rate mortgage to 2.94%. This represents a drop from 2.96% the previous week and 3.28% a year ago. The 15-year fixed-rate mortgage and 5-year ARM also saw declines. Chief Economist Sam Khater noted that while low rates present refinancing opportunities, particularly for Black and Hispanic borrowers, inflation may soon drive rates higher. The PMMS focuses on conventional loans for well-qualified borrowers.

Positive

• 30-year fixed-rate mortgage dropped to 2.94%, supporting housing affordability.
• 15-year fixed-rate mortgage also decreased to 2.26%, enhancing refinancing options.
• Low rates may lead to increased refinancing opportunities, potentially benefiting the housing market.

Negative

• Potential for rising mortgage rates due to accelerating consumer inflation.
• Many eligible borrowers, particularly Black and Hispanic, are not refinancing despite low rates.

MCLEAN, Va., May 13, 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 2.94 percent.

“Since the most recent peak in April, mortgage rates have declined nearly a quarter of a percent and have remained under three percent for the past month,” said Sam Khater, Freddie Mac’s Chief Economist. “Low rates offer homeowners an opportunity to lower their monthly payment by refinancing and our most recent research shows that many borrowers, especially Black and Hispanic borrowers, who could benefit from refinancing still aren’t pursuing the option.”

Khater continued, “Additionally, the low mortgage rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer.”

News Facts

• 30-year fixed-rate mortgage averaged 2.94 percent with an average 0.7 point for the week ending May 13, 2021, down from last week when it averaged 2.96 percent. A year ago at this time, the 30-year FRM averaged 3.28 percent.
• 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week when it averaged 2.30 percent. A year ago at this time, the 15-year FRM averaged 2.72 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.59 percent with an average 0.3 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 5-year ARM averaged 3.18 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/5211f112-1a82-49b9-af9a-75ecf51b9a2b

FAQ

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

As of May 13, 2021, the average rate for a 30-year fixed-rate mortgage is 2.94%.

What are Freddie Mac's projections for mortgage rates in summer 2021?

Freddie Mac warns that consumer inflation may lead to higher mortgage rates in the summer.

How have mortgage rates changed compared to last year?

The 30-year fixed-rate mortgage has decreased from an average of 3.28% a year ago.

What percentage of borrowers are taking advantage of refinancing opportunities?

Freddie Mac's research indicates that many eligible borrowers, particularly Black and Hispanic individuals, are not pursuing refinancing options.

What is the average rate for a 15-year fixed-rate mortgage as of May 13, 2021?

The average rate for a 15-year fixed-rate mortgage is 2.26%.