Mortgage rates remain below 3%

Mortgage rates rose slightly this week, but still remain below the 3% mark, as Freddie Mac’s Primary Mortgage Market Survey (PMMS) found that in 30 fixed-rate mortgages (FRMs) years was 2.99%, up from 2.95% last week. . Around the same time a year ago, the 30-year FRM averaged 3.18%.

“Home prices continue to accelerate, while inventories remain low and construction of new homes cannot happen fast enough,” said Sam Khater, chief economist at Freddie Mac. “Many potential buyers would like to take advantage of low mortgage rates, but the competition is fierce. For homeowners, however, keeping rates low makes refinancing an option worth considering. “

Freddie Mac also reported the 15-year FRM averaging 2.27% with an average of 0.6 points, unchanged from last week. Around the same time a year ago, the 15-year FRM averaged 2.62%. The five-year Treasury-indexed variable-rate hybrid mortgage (ARM) averaged 2.64% with an average of 0.2 points, up from last week when it averaged 2.59%. Around the same time a year ago, the five-year ARM averaged 3.10%.

As Khater noted, median home prices continued to appreciate in May, as Realtor.com reported that prices hit an all-time high of $ 380,000, up 15.2% from year after year.

And with prices at record highs, more and more people are pressing for a break in finding a new home, the Mortgage Bankers Association (MBA) reported that the overall volume of mortgage applications has fallen by 4 Week-to-week% for the week ending May. 28, 2021.

“While interest rates remain affordable and around 20 basis points lower than last year, double-digit home price gains over the past 10 months have pushed the median listing price to a low. new record, resulting in a monthly mortgage payment of $ 150 same time in 2020, ”said George Ratiu, senior economist at Realtor.com. “In addition to the higher cost, today’s homebuyers face extremely low inventory and a competitive landscape, in which they compete not only with other first-time homebuyers. and homeowners looking for their next home, but also with investment funds in their pockets, bring all-cash offers to the closing table. Unsurprisingly, mortgage applications fell for the second week in a row, as income growth for many first-time buyers did not keep pace with rising house prices. As Americans return to a new normal in business and travel, housing markets seek relief from overheating demand. “


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