Mortgage Rates Continue to Inch Up

Rhea-AI Summary

On March 18, 2021, Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey, revealing that the average 30-year fixed-rate mortgage rose to 3.09%, up from 3.05% the previous week. This increase comes amid declining residential construction and low inventory challenges for homebuyers. The 15-year fixed-rate mortgage averaged 2.40%, while the 5-year ARM reached 2.79%. Despite the rising rates, demand remains as prospective buyers are still engaging in the market.

Positive

• 30-year fixed-rate mortgage increased to 3.09%, indicating a stable mortgage environment.
• 15-year fixed-rate mortgage at 2.40% shows competitive lending rates.

Negative

• Residential construction has declined for two consecutive months, signaling potential market weaknesses.
• Low inventory levels create challenges for first-time homebuyers.

MCLEAN, Va., March 18, 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 3.09 percent.

“As expected, mortgage rates continued to inch up but are still hovering around three percent, keeping interested buyers in the market,” said Sam Khater, Freddie Mac’s Chief Economist. “However, residential construction has declined for two consecutive months and given the very low inventory environment, competition among potential homebuyers is a challenging reality, especially for first-time homebuyers.”

News Facts

• 30-year fixed-rate mortgage averaged 3.09 percent with an average 0.7 point for the week ending March 18, 2021, up from last week when it averaged 3.05 percent. A year ago at this time, the 30-year FRM averaged 3.65 percent.
• 15-year fixed-rate mortgage averaged 2.40 percent with an average 0.7 point, up from last week when it averaged 2.38 percent. A year ago at this time, the 15-year FRM averaged 3.06 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.79 percent with an average 0.3 point, up from last week when it averaged 2.77 percent. A year ago at this time, the 5-year ARM averaged 3.11 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/a75623f4-f596-4fb4-ac93-0658c7543cd5

FAQ

What is the current average rate for a 30-year fixed mortgage from Freddie Mac (FMCC)?

As of March 18, 2021, the average rate for a 30-year fixed mortgage is 3.09%.

How did the 15-year fixed-rate mortgage perform in Freddie Mac's latest report?

The 15-year fixed-rate mortgage averaged 2.40%, slightly up from the previous 2.38%.

What challenges are first-time homebuyers facing according to Freddie Mac's latest survey?

First-time homebuyers are facing challenges due to declining residential construction and low inventory.

What does the Primary Mortgage Market Survey by Freddie Mac (FMCC) indicate about mortgage trends?

The survey indicates a slight increase in mortgage rates while highlighting ongoing challenges in the housing market.