Mortgage Rates Hit Three Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the average 30-year fixed-rate mortgage increased to 3.02% for the week ending March 4, 2021, marking a rise from 2.97% the previous week and 3.29% a year ago. The Chief Economist noted a noticeable impact on purchase demand, which has cooled but remains high compared to pre-pandemic levels. The 15-year fixed-rate mortgage remained steady at 2.34%, while the 5-year Treasury-indexed ARM fell to 2.73%. Freddie Mac continues to enhance housing accessibility and affordability.

Positive

• 30-year fixed-rate mortgage averaged 3.02%, indicating a recovery in mortgage rates.
• Freddie Mac's ongoing commitment to improving housing accessibility and affordability.

Negative

• Purchase demand has noticeably cooled in recent weeks.
• Rising mortgage rates may impact future purchase activities.

MCLEAN, Va., March 04, 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 3.02 percent.

“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable,” said Sam Khater, Freddie Mac’s Chief Economist. “While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”

News Facts

• 30-year fixed-rate mortgage averaged 3.02 percent with an average 0.6 point for the week ending March 4, 2021, up from last week when it averaged 2.97 percent. A year ago at this time, the 30-year FRM averaged 3.29 percent.
• 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.79 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.73 percent with an average 0.3 point, down from last week when it averaged 2.99 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/5671a167-50ce-4c75-8a97-be7e7fc0f6ca

FAQ

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

As of March 4, 2021, the average rate for a 30-year fixed mortgage is 3.02%.

How did the 15-year fixed-rate mortgage perform?

The 15-year fixed-rate mortgage remained unchanged at 2.34%.

What trend is observed in mortgage rates according to FMCC's report?

Mortgage rates have risen by more than 30 basis points since January 2021.

What was the average rate for the 5-year ARM reported by FMCC?

The average rate for the 5-year Treasury-indexed hybrid ARM is 2.73%.

How has purchase demand changed according to Freddie Mac?

Purchase demand has cooled but remains similar to early March levels before the pandemic.