Mortgage interest rates are remaining low and steady week-over-week, holding firm amid low supply and uncertain expectations about the overall direction the housing market is taking.
Rates barely budged compared to last week, according to Freddie Mac’s weekly rate survey, with 30-year, 15-year and 5/1 ARM rates all moving no more than one basis point up or down: The 30-year rate dropped one basis point to 2.86 percent, while the 15-year rate went up one point to 2.16 percent and the 5/1 ARM dropped one point to 2.43 percent.
“Mortgage rates stayed relatively flat this week,” Freddie Mac Chief Economist Sam Khater said in the press release. “Housing is in a similar phase of the economic cycle as many other consumer goods.”
“While there is strong latent demand, low supply has caused prices to rise as shortages restrict the amount of sales activity that otherwise would occur,” he added.
The steady rates come as mortgage applications have dropped considerably by most metrics and numerous markets across the U.S. have seen a pronounced dip in home sales.