Fixed mortgage rates inched up this week but remained below 3% as a result of the Fed’s decision to keep interest rates low.
The rate on the 30-year mortgage loan averaged 2.98%, up one basis point from last week, Freddie Mac’s Primary Mortgage Market Survey showed. The 30-year fixed-rate mortgage is down 20 basis points since hitting its highest level in June 2020.
Meanwhile, the 15-year fixed-rate loan rose from 2.29% to 2.31% week over week. The five-year Treasury-indexed hybrid adjustable-rate mortgage dropped from last week’s average of 2.83% to 2.64%.
“In light of the rising COVID caseloads globally, US Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data,” said Freddie Mac chief economist Sam Khater. “The good news is that with rates under 3%, 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.”