Mortgage rates stayed the same last week, once again averaging 3.55%, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.55%. A year ago at this time, the 30-year FRM averaged 2.73%.
“The economy lost some momentum in January, leaving mortgage rates unchanged from last week and relatively flat for the third consecutive week. This stagnation reflects the economic impact of the Omicron variant of COVID-19, which we believe will subside in the coming months,” said Sam Khater, Freddie Mac’s Chief Economist.
“As economic recovery continues going into the spring and summer, mortgage rates are expected to resume their upward trajectory. In the meantime, recent data suggests that homebuyer demand continues to be elevated as supply remains low, driving higher home prices.”
Omicron cases are subsiding, though the death toll hit in the US hit its highest level in a year, up 39% over the past two weeks.
The economy is slowly recovering. The Fed has said the labor market has recovered enough to implement rate hikes, with Fed Chairman Jerome Powell saying “labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment.”
Housing demand remains high. Purchase applications rose 4% on an adjusted basis last week.
Additional findings from Thursday’s report:
- 15-year fixed-rate mortgage averaged 2.77% with an average 0.7 point.
- A year ago at this time, the 15-year FRM averaged 2.21%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71% with an average 0.3 point.
- A year ago at this time, the 5-year ARM averaged 2.78%.