Mortgage Rates Remain Flat

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.87% for the week ending October 8, 2020, slightly down from 2.88% the previous week and down from 3.57% a year prior. The 15-year FRM averaged 2.37%, up from 2.36%, while the 5-year ARM averaged 2.89%, down from 2.90%. Despite a flattening trend in rates, buyer demand remains strong, especially among first-time buyers in affordable regions like the Midwest, where home prices are accelerating considerably.

Positive

• 30-year fixed-rate mortgage at 2.87%, encouraging homebuying activity.
• Increased demand for housing among first-time buyers.
• Strong market activity in more affordable areas, particularly the Midwest.

Negative

• None.

MCLEAN, Va., Oct. 08, 2020 (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 2.87 percent.

“The year-long slide in mortgage rates seems to be ending as rates have flattened over the last month and the economic rebound has slowed,” said Sam Khater, Freddie Mac’s Chief Economist. “But with near record low rates, buyer demand remains robust with strong first-time buyers coming into the market. The demand is particularly strong in more affordable regions of the country such as the Midwest, where home prices are accelerating at the highest rates over the last two decades.”

News Facts

• 30-year fixed-rate mortgage averaged 2.87 percent with an average 0.8 point for the week ending October 8, 2020, slightly down from last week when it averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 3.57 percent.
• 15-year fixed-rate mortgage averaged 2.37 percent with an average 0.7 point, slightly up from last week when it averaged 2.36 percent. A year ago at this time, the 15-year FRM averaged 3.05 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.89 percent with an average 0.2 point, slightly down from last week when it averaged 2.90 percent. A year ago at this time, the 5-year ARM averaged 3.35 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/c3237caf-f78f-40df-86e3-a99fb59da67a

FAQ

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

The current average rate for a 30-year fixed-rate mortgage is 2.87% as of October 8, 2020.

How has the 30-year fixed-rate mortgage changed compared to last year?

A year ago, the 30-year fixed-rate mortgage averaged 3.57%, indicating a significant decline in rates.

What trends are observed in mortgage rates according to FMCC's latest report?

Mortgage rates have flattened recently, ending a year-long slide, but remain near record lows.

What is driving the demand for homebuying in the Midwest according to FMCC?

Demand is notably strong among first-time buyers, particularly in the Midwest where home prices are rising.