The 30-year fixed-rate mortgage stayed at its record low this week, offering an opportunity for home buyers to lock in the lowest rate in Freddie Mac’s records dating back 50 years.
The 30-year fixed-rate mortgage averaged 3.13% this week.
The mortgage market has seen a resurgence in applications for home purchases in recent weeks. “The rebound in purchase demand partly reflects deferred sales as well as continued interest from prospective buyers looking to take advantage of the low mortgage rate environment,” says Sam Khater, Freddie Mac’s chief economist.
30-year fixed-rate mortgages: averaged 3.13%, with an average 0.8 point, unchanged from last week’s all-time low average. Last year at this time, 30-year rates averaged 3.73%.
15-year fixed-rate mortgages: averaged 2.59%, with an average 0.8 point, rising slightly from a 2.58% average. A year ago, 15-year rates averaged 3.16%.
5-year hybrid adjustable-rate mortgages: averaged 3.08%, with an average 0.5 point, falling slightly from last week’s 3.09% average. A year ago, 5-year ARMs averaged 3.39%.
Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.
This is good news for new home owners as they compete for limited stock on the market. These low rates also decrease the barrier to homeownership for everyone between empty nesters looking to relocate to the fresh-out-of school student.