|Mortgage Rates Hit Another All-Time Low|
|Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.86 percent, the lowest rate in our survey’s history which dates back to 1971.|
“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery,” said Sam Khater, Freddie Mac’s Chief Economist. “These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months. However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”
30-year fixed-rate mortgage averaged 2.86 percent with an average 0.8 point for the week ending September 10, 2020, down from last week when it averaged 2.93 percent. A year ago at this time, the 30-year FRM averaged 3.56 percent.
15-year fixed-rate mortgage averaged 2.37 percent with an average 0.7 point, down from last week when it averaged 2.42 percent. A year ago at this time, the 15-year FRM averaged 3.09 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.11 percent with an average 0.2 point, up from last week when it averaged 2.93 percent. A year ago at this time, the 5-year ARM averaged 3.36 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.