Uptick snaps four-week streak of sub-3% rates
After four straight weeks of sub-3% rates, the average 30-year fixed-rate mortgage rose six basis points to 3%, Freddie Mac reported Thursday.
The increase marks the first time in about a month the benchmark mortgage rate has reached 3%. Still, it is cheaper than it was at the end of March when it peaked at 3.2%.
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Despite the low-rate environment, the historic housing shortage across the nation remains a big problem, Freddie Mac Chief Economist Sam Khater noted.
“The lack of housing supply has been compounded by labor disruptions and expensive building materials that are driving up the cost of new housing, making it difficult for homebuyers to find homes to purchase,” Khater said.
The average 15-year fixed-rate mortgage was up from 2.26% a week ago to 2.29%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.59%, unchanged from last week.