Mortgage Rates Move Up
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.81% for the week ending February 18, 2021, a rise from 2.73% the previous week. This rate is significantly lower than the 3.49% average a year ago. The 15-year fixed-rate mortgage also increased to 2.21%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage decreased slightly to 2.77%. Chief Economist Sam Khater attributed the rising rates to improved economic spending and supply chain shortages causing inflation. Despite fluctuations, rates are expected to remain low throughout the year.
- 30-year fixed-rate mortgage averaged 2.81%, lower than the 3.49% from last year.
- 15-year fixed-rate mortgage increased to 2.21% from 2.99% last year.
- Inflation concerns due to supply chain shortages may impact mortgage rates.
MCLEAN, Va., Feb. 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 2.81 percent.
“Reaching its highest point since mid-November, the 30-year fixed-rate mortgage averaged 2.81 percent this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Economic spending has improved, due to the most recent stimulus, but supply chain shortages are causing downstream inflation, leading to higher mortgage rates. While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.”
News Facts
- 30-year fixed-rate mortgage averaged 2.81 percent with an average 0.7 point for the week ending February 18, 2021, up from last week when it averaged 2.73 percent. A year ago at this time, the 30-year FRM averaged 3.49 percent.
- 15-year fixed-rate mortgage averaged 2.21 percent with an average 0.7 point, up from last week when it averaged 2.19 percent. A year ago at this time, the 15-year FRM averaged 2.99 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.77 percent with an average 0.2 point, down from last week when it averaged 2.79 percent. A year ago at this time, the 5-year ARM averaged 3.25 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/d087daef-9062-4291-8edc-a8f63f6d72d9
FAQ
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