Wednesday , 6 January 2021

Mortgage Rates Holding Steady at Record Lows

Mortgage rates held steady this week as the average rate for a 30-year fixed-rate mortgage stayed pinned at a record low of 2.71%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).

That’s down from 3.73% a year ago.

The average rate for a 15-year fixed-rate mortgage was 2.26%, unchanged from last week but down from 3.19% a year ago.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.79%, down from 2.86% last week and down from 3.36% a year ago.

“Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage spreads – the difference between mortgage rates and the 10-year Treasury rate – are declining from their elevated levels earlier this year. Although today’s mortgage spread is about 1.8 percentage points and still has some room to move down if the 10-year Treasury continues to rise, it’s encouraging to see that the spread is almost back to normal levels.”

The post Mortgage Rates Holding Steady at Record Lows appeared first on MortgageOrb.


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