Mortgage Rates Hit Record Low To Start The Year
Freddie Mac released the results of its Primary Mortgage Market Survey, showing that the 30-year fixed-rate hit the lowest rate in the survey’s history. (Freddie Mac)w
- 30-YR FIXED: Averaged 2.65% with an average 0.7 point which is down from last week when it averaged 2.67%. A year ago it averaged 3.64%
- 15-YR FIXED: Averaged 2.16% with an average 0.6 point which is down slightly from last week when it averaged 2.17%. A year ago it averaged 3.07%
RIGHT NOW: Sam Khater, Freddie Mac’s Chief Economist, provided analysis on the present and future state of the housing market. “Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices.” However, the yield on the 10-year U.S. Treasury note closed at 1.07% Thursday up from 0.955% on Tuesday. It is the highest close since March. So what’s next?
THE YEAR AHEAD: Khater says low rates and housing affordability is not destined to last. He predicts that rates are poised to rise modestly this year and that could make affordability an issue, “The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”