Mortgage Rates Reach Another Record Low

MCLEAN, Va. — Freddie Mac Thursday released the results of its Primary Mortgage Market Survey, showing that the 30-year fixed-rate mortgage (FRM) averaged 2.71 percent, the lowest rate in the survey’s history which dates back to 1971.

Sam Khater, Freddie Mac’s Chief Economist says, “Despite persistently low mortgage rates, home sales have hit a wall. While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment.”

News Facts

• 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week ending December 3, 2020, down from last week when it averaged 2.72 percent. A year ago at this time, the 30-year FRM averaged 3.68 percent.

• 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week when it averaged 2.28 percent. A year ago at this time, the 15-year FRM averaged 3.14 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent with an average 0.3 point, down from last week when it averaged 3.16 percent. A year ago at this time, the 5-year ARM averaged 3.39 percent.