Mortgage Rate Unchanged From Last Week’s Record Low

By Kerry Smith

Last week, the average 30-year, fixed-rate mortgage hit its 14th record low this year, and it held onto that 2.71% rate. The 15-year loan was also unchanged at 2.26%.

MCLEAN, Va. – The average 30-year mortgage rate held onto the 2.71% average rate it hit last week – the 14th record low set this year.

“Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher,” says Sam Khater, Freddie Mac’s chief economist. The Treasurys play a role in mortgage rates since they’re part of the funding mechanism.

“Mortgage spreads – the difference between mortgage rates and the 10-year Treasury rate – are declining from their elevated levels earlier this year,” Khater adds. “Although today’s mortgage spread is about 1.8% 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 30-year fixed-rate mortgage (FRM) averaged 2.71% with an average 0.7 point for the week ending Dec. 10, 2020, unchanged from last week. A year ago, the 30-year FRM averaged 3.7%.

The 15-year FRM averaged 2.26% with an average 0.6 point, also unchanged from last week. On year earlier, the 15-year FRM averaged 3.19%.

Only the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) declined in this week’s survey. It averaged 2.79% with an average 0.3 point, down from last week when it averaged 2.86%. A year ago, the 5-year ARM averaged 3.36%.

© 2020 Florida Realtors®

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