A weekly mortgage rate survey from Freddie Mac shows rates continuing to slide, but the snapshot of average rates over a seven-day period doesn’t fully reflect new data that’s pushed rates up this week on renewed worries about inflation.
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A closely watched weekly mortgage rate survey from Freddie Mac shows rates continuing to slide, but the snapshot of average rates over a seven-day period doesn’t fully reflect new data that’s pushed rates up this week on renewed worries about inflation.
Freddie Mac reported that for the week ending May 13:
Rates on
30-year fixed-rate mortgages averaged 2.94 percent with an average 0.7 point, down from 2.96 percent last week and 3.28 percent a year ago.
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Mortgage rates held stead, increasing only slightly, but remained below 3 percent as the number of global COVID-19 cases rose.
Freddie Mac released the results of its Primary Mortgage Market Survey on Thursday, showing that the 30-year fixed-rate mortgage averaged 2.98 percent, up slightly from last week’s 2.97 percent. This is down from last year, when the 30-year rate averaged 3.23 percent.
“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,” Freddie Mac Chief Economist Sam Khater said. “The good news is that with rates under 3 percent, refinancing continues to be attractive for many borrowers who financed before 2020. But, for eager buyers, especially first-time homebuyers, inventory continues to be extremely tight and competition for available homes to purchase remains high.”
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The economy is improving, homebuyer demand remains strong and COVID-era restrictions are easing, but mortgage giants Fannie Mae and Freddie Mac each predicted a slowdown in the housing market as mortgage originations decrease in 2021.
Fannie Mae revised its forecast down to predict mortgage originations will drop from 4.5 trillion in 2020 to just under 4 trillion this year and to just under 3 trillion in 2022. Freddie Mac’s forecast was even lower, stating that because higher mortgage rates have the potential to dampen the robust demand the housing market has been experiencing, it forecasts total originations to decline to $3.5 trillion in 2021.
Fannie Mae stated that while housing demand remains strong, the ESR Group revised its annual home sales forecast slightly downward due to continued supply constraints and a modestly higher outlook for mortgage rates. Even so, it forecasted that much of the decline would result from refinances as it expects home sales an
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Mortgage interest rates dropped for the second week in a row, brought on by various economic imbalances as the economy continues to recover.
The 30-year fixed-rate mortgage decreased to 3.04 percent for the week ending Apr. 15, 2021, according to the latest Primary Mortgage Market Survey from Freddie Mac. That’s down from last week when it averaged 3.13 percent and from last year’s 3.31 percent. This decrease came after mortgage interest rates dropped last week for the first time in about two months.
“Mortgage rates took another dip this week as the 30-year fixed-rate mortgage decreased by almost 10 basis points, week over week,” Freddie Mac Chief Economist Sam Khater said. “The economy is improving on the demand side and on the supply side, a variety of goods and materials remain scarce.