Mortgage Rates Close 2020 Near Record Lows

Mortgage rates closed 2020 where they spent much of the year – near historic lows.

For the week ending December 31, Freddie Mac’s weekly Primary Mortgage Market Survey found:

  • The 30-year fixed-rate mortgage averaged 2.67 percent with an average 0.7 point, up slightly from last week’s record low 2.66 percent and well below last year’s 3.72 percent.
  • The 15-year fixed-rate mortgage averaged 2.17 percent with an average 0.7 point, down from last week’s 2.19 percent and last year’s 3.16 percent.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.71 percent with an average 0.4 point, down from last week’s 2.79 percent and last year’s 3.46 percent.

“All eyes have been on mortgage rates this year, especially the 30-year fixed-rate, which has dropped more than one percentage point over the last twelve months, driving housing market activity in 2020,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into 2021 we expect rates to remain flat, potentially rising modestly off their record low, but solid purchase demand and tight inventory will continue to put pressure on housing markets as well as house price growth.”