Little Change for Mortgage Rates, Still Under 3%

By Kerry Smith

The average rate for a 30-year, fixed- rate mortgage rose to 2.98% from last week’s 2.97%. Tight inventory remains a problem, but low rates should still attract buyers.

MCLEAN, Va. – The 30-year fixed-rate mortgage (FRM) averaged 2.98% this week, according to Freddie Mac’s Primary Mortgage Market Survey. It’s stable compared to last week’s average rate of 2.97% – and it’s still below 3%.

“In light of the rising COVID caseloads globally, U.S. Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data,” says Sam Khater, Freddie Mac’s chief economist.

“The good news is that with rates under three percent, refinancing continues to be attractive for many borrowers who financed before 2020,” Khater adds. “But, for eager buyers, especially first-time homebuyers, inventory continues to be extremely tight and competition for available homes to purchase remains high.”

Snapshot of this week’s mortgage rates

• 30-year fixed-rate mortgages averaged 2.98% with an average 0.7 point for the week ending April 29, 2021, up slightly from last week’s 2.97%. A year ago, the 30-year FRM averaged 3.23%.

• 15-year fixed-rate mortgages averaged 2.31% with an average 0.7 point, up from last week’s 2.29%. A year ago, the 15-year FRM averaged 2.77%.

• 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 2.64% with an average 0.3 point, down from last week’s 2.83%. A year ago, the 5-year ARM averaged 3.14%.

The survey considers conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.

© 2021 Florida Realtors®

Reprinted with permission.

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