Low interest rates continue to increase opportunities for home buyers to either afford their first home, upgrade, or rake in the benefits of selling their existing residence with a high return and locating their retirement home. With inventory low, how does this impact the market with high demand?
Sam Khater, Freddie Mac’s Chief Economist says, “Despite persistently low mortgage rates, home sales have hit a wall. While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment.”
- 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week ending December 3, 2020, down from last week when it averaged 2.72 percent. A year ago at this time, the 30-year FRM averaged 3.68 percent.
- 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week when it averaged 2.28 percent. A year ago at this time, the 15-year FRM averaged 3.14 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent with an average 0.3 point, down from last week when it averaged 3.16 percent. A year ago at this time, the 5-year ARM averaged 3.39 percent.
The PMMS® is focused on conventional, conforming, fully-amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers.