Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed rates stayed basically flat for yet another week, with 30-year fixed-rate mortgage averaging 2.86%. It was 2.87% this week a year ago.
Last week it inched up 0.1% to 2.88%. This week it dropped 0.2%. Overall, it’s been months since it moved significantly.
Rates on 15-year fixed-rate mortgages dropped to 2.12%, down from 2.19% last week. Fifteen-year rates averaged 2.35% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.51%, increasing from last week’s 2.42%. Last year it was 2.96%.
“It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months. The holding pattern in rates reflects the markets’ view that the prospects for the economy have dimmed somewhat due to the rebound in new COVID cases,” said Sam Khater, Freddie Mac’s Chief Economist.
“While our collective attention is on the pandemic, fundamental changes in the economy are occurring, such as increased migration, the extended continuation of remote work, increased use of automation, and the focus on a more energy efficient and resilient economy. These factors will likely lead to significant investment and new post-pandemic economic models that will spur economic growth.”
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit, published weekly since 1971.