Mortgage rates fall flat week-over-week

The 30-year fixed mortgage rate remains below 3%

Mortgage rates fall flat week-over-week

Freddie Mac reported a slight drop in mortgage rates this week, with the 30-year fixed-rate mortgage (FRM) averaging 2.86%.

That was one basis point lower from a week ago, and down from 2.99% last year, according to Freddie’s Primary Mortgage Market Survey. The benchmark rate has stayed below 3% in the past two months.

Meanwhile, the 15-year fixed-rate mortgage increased by one basis point to 2.16%. A year ago, at this time, the 15-year FRM was 2.54%.

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The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) dipped from 2.44% to 2.43% week over week. A year ago at this time, the five-year ARM averaged 2.91%.

“Mortgage rates stayed relatively flat this week,” said Freddie Mac chief economist Sam Khater. “Housing is in a similar phase of the economic cycle as many other consumer goods. While there is strong latent demand, low supply has caused prices to rise as shortages restrict the amount of sales activity that otherwise would occur.”