The low-mortgage-rate environment continues to boost homebuying activity, says Freddie Mac
Mortgage rates had a slight upturn this week but remained relatively low, according to the Freddie Mac Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage rose two basis points to 3.49%, up from last week’s average of 3.47%. Last year at this time, the average rate for the 30-year FRM was 4.35%.
Freddie Mac Chief Economist Sam Khater said that the low-rate condition set the stage for a promising homebuying season this year.
“The low-mortgage-rate environment continues to spur homebuying activity, with applications to purchase a home up 15% from a year ago,” Khater said. “We’ve seen new residential construction surge over the last few months, on pace to reach the highest level in more than a decade. This is a good sign for the inventory-starved housing market and is a promising indication for the spring homebuying season.”
The 15-year fixed-rate mortgage rose to 2.99% from last week’s 2.97%. A year ago, the 15-year FRM was 3.78%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) fell to 3.25% week over week from 3.28% and 3.84% year over year.
