“All eyes have been on mortgage rates this year, especially the 30-year fixed-rate, which has dropped more than one percentage point over the last twelve months, driving housing market activity in 2020,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into 2021 we expect rates to remain flat, potentially rising modestly off their record low, but solid purchase demand and tight inventory will continue to put pressure on housing markets as well as house price growth.”
- 30-year fixed-rate mortgage averaged 2.67 percent with an average 0.7 point for the week ending December 31, 2020, up slightly from last week when it averaged 2.66 percent. A year ago at this time, the 30-year FRM averaged 3.72 percent.
- 15-year fixed-rate mortgage averaged 2.17 percent with an average 0.7 point, down from last week when it averaged 2.19 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent with an average 0.4 point, down from last week when it averaged 2.79 percent. A year ago at this time, the 5-year ARM averaged 3.46 percent.
The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have 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 the definitions. Borrowers may still pay closing costs which are not included in the survey.