Sub-3% mortgages are slowly fading into the rearview mirror as the 30-year fixed-rate mortgage continues to inch up. The 30-year fixed-rate mortgage averaged 3.09% this week, Freddie Mac reports.
Economists continue to remind consumers that mortgage rates are still near historical lows and are hovering around 3%. “Even though mortgage rates will likely continue to rise later this year, with the Fed keeping interest rates low, mortgage rates will remain favorable for would-be home buyers and owners to refinance,” Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, wrote on the association’s Economists’ Outlook blog.
So far, the increase in mortgage rates has not appeared to deter would-be buyers. Home purchase mortgage activity continues to remain elevated and sales of both new and existing homes are at a 14-year high, Evangelou notes.
Freddie Mac reports the following national averages with mortgage rates for the week ending March 18:
- 30-year fixed-rate mortgages: averaged 3.09%, with an average 0.7 point, rising from last week’s 3.05% average. Last year at this time, 30-year rates averaged 3.65%.
- 15-year fixed-rate mortgages: averaged 2.40%, with an average 0.7 point, increasing from last week’s 2.38% average. A year ago, 15-year rates averaged 3.06%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.79%, with an average 0.3 point, increasing from last week’s 2.77% average. A year ago, 5-year ARMs averaged 3.11%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.
Source: Freddie Mac and “Instant Reaction: Mortgage Rates, March 18, 2021,” National Association of REALTORS® Economists’ Outlook blog (March 18, 2021)
