Mortgage Rates Rise

Rhea-AI Summary

On February 25, 2021, Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.97%, increasing from 2.81% the previous week. Year-over-year, this rate reflects a decrease from 3.45%. The 15-year fixed-rate mortgage also rose to 2.34% from 2.21% last week, down from 2.95% a year ago. Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99%. Freddie Mac's survey underscores how rising mortgage rates, combined with increasing home prices and low inventory, are affecting housing competitiveness.

Positive

• 30-year mortgage rates remain historically low despite the increase.
• Freddie Mac continues to support affordable housing access.

Negative

• Increasing mortgage rates limit homebuyer competitiveness.
• Rising home prices combined with low inventory could deter potential buyers.

MCLEAN, Va., Feb. 25, 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 2.97 percent.

“Optimism continues as the economy slowly regains its footing, thus affecting mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Though rates continue to rise, they remain near historic lows. However, when combined with demand-fueled rising home prices and low inventory, these rising rates limit how competitive a potential homebuyer can be and how much house they are able to purchase.”

News Facts

• 30-year fixed-rate mortgage averaged 2.97 percent with an average 0.6 point for the week ending February 25, 2021, up from last week when it averaged 2.81 percent. A year ago at this time, the 30-year FRM averaged 3.45 percent.
• 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.6 point, up from last week when it averaged 2.21 percent. A year ago at this time, the 15-year FRM averaged 2.95 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99 percent with an average 0.1 point, up from last week when it averaged 2.77 percent. A year ago at this time, the 5-year ARM averaged 3.20 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/82a7bc77-7a51-4128-a78e-8581228ac2df

FAQ

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

As of February 25, 2021, the 30-year fixed-rate mortgage averaged 2.97%.

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

The 15-year fixed-rate mortgage averaged 2.34%, up from 2.21% the previous week.

What impact do rising mortgage rates have on homebuyers according to Freddie Mac?

Rising mortgage rates limit how competitive potential homebuyers can be, affecting their purchasing power.

How does the current mortgage rate compare to last year?

A year ago, the 30-year fixed-rate mortgage averaged 3.45%, showing a decrease in rates this year.