Saturday, 27 February 2021 | The Latest Buzz for the Appraisal Industry

Mortgage Rates Hold at Record Lows as U.S. Economy Bifurcates Along Sectors

Mortgage rates were basically flat this week, as the average rate for a 30-year fixed-rate mortgage remained pinned at 2.73%, according to Freddie Mac’s Primary Mortgage Market Survey.

Still, that’s down considerably from 3.47% a year ago.

“It’s a tale of two economies. The services economy remains in the doldrums, but the production side of the economy remains strong,” says Sam Khater, chief economist for Freddie Mac, in a statement. “New COVID-19 cases are receding, which is encouraging and that has led to a rise in Treasury rates. But, the run-up in Treasury rates has not impacted mortgage rates yet, which have held firm.

“The residential real estate market remains solid given healthy purchase demand while implied real-time home price growth is high, due to the inventory shortage that is plaguing the housing market,” Khater adds.

For the week ended February 11, the average rate for a 15-year fixed-rate mortgage was 2.19%, down from 2.21% the previous week and down from 2.97% a year ago.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.79%, up slightly from 2.78% last week but down from 3.28% a year ago.

Photo: Tierra Mallorca

The post Mortgage Rates Hold at Record Lows as U.S. Economy Bifurcates Along Sectors appeared first on MortgageOrb.

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