Mortgage Rates Moved Slightly Higher Again to 3.05%

By Kerry Smith

This week’s 3.05% for an average 30-year, fixed-rate mortgage is only slightly higher than last week’s 3.02%, but it’s the second week in a row to top the 3% mark.

MCLEAN, Va. – This week’s mortgage survey from Freddie Mac found a slight increase in the 30-year fixed-rate mortgage (FRM), which averaged 3.05 percent. The modest increase from last week’s 3.02% isn’t unusual by itself, but it’s the second week in a row with rates above the 3% mark.

“As the economy improves given labor market optimism, continued vaccination roll-out and additional stimulus pending, mortgage interest rates increased this week,” says Sam Khater, Freddie Mac’s chief economist.

Khater, however, says rising mortgage rates aren’t a threat to the robust housing market.

“Even as rates rise modestly, the housing market remains healthy on the cusp of spring homebuying season,” says Khater. “Homebuyer demand is strong and, for homeowners who have not refinanced but are looking to do so, they have not yet lost the opportunity.”

Rates also remain higher year-to-year, and the 30-year FRM averaged 3.36% one year ago.

The 15-year fixed-rate mortgage averaged 2.38% this week, with an average 0.6 point, up from 2.34% last week. A year ago, the 15-year FRM averaged 2.77%.

Adjustable-rate mortgages also increased this week. The 5-year,Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.77% with an average 0.3 point, up from last week’s 2.73%. A year ago, the 5-year ARM averaged 3.01%.

© 2021 Florida Realtors® Reprinted with permission.

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