Mortgage Rates Remain Flat

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported its Primary Mortgage Market Survey results, showing the average 30-year fixed-rate mortgage rate at 2.73%, unchanged from last week. This stability signals a continued challenging economic environment. Although lower income homeowners could benefit from refinancing, evidence suggests they are not taking advantage of the low rates as much as their upper-income counterparts. For the week ending February 4, 2021, the 15-year fixed-rate mortgage rose slightly to 2.21%.

Positive

• None.

Negative

• Lower income homeowners are not refinancing at the same rate as upper income homeowners despite the low interest rates.

MCLEAN, Va., Feb. 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 2.73 percent, unchanged from last week.

“Mortgage rates remained flat this week and near record lows, signifying an economy that continues to struggle,” said Sam Khater, Freddie Mac’s Chief Economist. “This rate environment is advantageous for those who are looking to refinance in order to strengthen their financial position. While many have already refinanced, the evidence suggests that upper income homeowners have taken advantage of the opportunity more so than lower income homeowners who could stand to benefit the most by lowering their monthly mortgage payment.”

News Facts

• 30-year fixed-rate mortgage averaged 2.73 percent with an average 0.7 point for the week ending February 4, 2021, unchanged from last week. A year ago at this time, the 30-year FRM averaged 3.45 percent.
• 15-year fixed-rate mortgage averaged 2.21 percent with an average 0.6 point, up slightly from last week when it averaged 2.20 percent. A year ago at this time, the 15-year FRM averaged 2.97 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78 percent with an average 0.3 point, down from last week when it averaged 2.80 percent. A year ago at this time, the 5-year ARM averaged 3.32 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/15fdfa74-3800-4085-a2c2-f730ab569c1f

FAQ

What is the current average rate for a 30-year fixed mortgage as of February 4, 2021?

The average rate for a 30-year fixed mortgage is 2.73% as of February 4, 2021.

How does the current 30-year fixed mortgage rate compare to last year?

The current 30-year fixed mortgage rate of 2.73% is significantly lower than 3.45% a year ago.

What was the average rate for a 15-year fixed mortgage as of February 4, 2021?

The average rate for a 15-year fixed mortgage is 2.21% as of February 4, 2021.

What is Freddie Mac's stock symbol?

Freddie Mac's stock symbol is FMCC.

What is the trend in mortgage rates according to the latest Freddie Mac report?

Mortgage rates have remained flat and near record lows, indicating a struggling economy.