MCLEAN, Va. – Freddie Mac released the results of its primary mortgage market survey on Thursday, Feb. 24, showing that 15- and 30-year fixed-rate mortgage rates are trending lower.
According to the survey, a 30-year fixed-rate mortgage averaged 3.89% with an average of 0.8 points for the week ending February 24. This figure is down from last week when it averaged 3.92%.
It is nevertheless higher than the rates offered a year ago at this time. Last year, the 30-year FRM averaged 2.97%.
The 15-year fixed rate mortgage also fell, averaging 3.14% with an average of 0.7 points. This is slightly down from last week when it averaged 3.15%. A year ago, the 15-year FRM averaged 2.34%.
“Even with this week’s drop, mortgage rates have risen more than one percent over the past six months,” said Sam Khater, chief economist at Freddie Mac. “Overall economic growth remains strong, but rising inflation is already impacting consumer confidence, which has declined markedly in recent months. As we enter spring home buying season with mortgage rates higher and inventories still low, we expect home price growth to remain firm before slowing later this year.
The 5-year Treasury-indexed hybrid variable-rate mortgage was unchanged from last week. It was on average 2.98% with an average of 0.3 points. Last year, the 5-year ARM averaged 2.99%.
PMMS is focused on conventional, conforming, fully amortized home purchase loans for borrowers who have a 20% down payment and excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our founding by Congress in 1970, we have made housing more accessible and affordable for buyers and renters in communities nationwide. We are building a better housing finance system for buyers, renters, lenders, investors and ratepayers. Learn more at FreddieMac.com, Twitter @FreddieMac and the Freddie Mac blog FreddieMac.com/blog.