Mortgage Rates Climb Toward 3%

Mortgage rates climbed again this week, inching ever closer to 3 percent as confidence in the economy begins to climb, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday.

The survey found:

  • The 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’s 2.81 percent and down from 3.45 percent last year at this time.
  • The 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.6 point, up from last week’s 2.21 percent and down from last year’s 2.95 percent.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99 percent with an average 0.1 point, up from last week’s 2.77 percent and down from last year’s 3.20 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.”