30-Year Mortgage Rate Moves to its Highest Level Since Mid-November in Week Ending February 18, 2021

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending February 18, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.81% with an average 0.7 point, up from last week when it averaged 2.73%. A year ago at this time, the 30-year FRM averaged 3.49%. The 15-year fixed-mortgage averaged 2.19% with an average 0.6 point, down from last week when it averaged 2.21% with an average 0.7 point, up from last week when it averaged 2.19%. A year ago at this time, the 15-year FRM averaged 2.99%. In prepared remarks, Freddie Mac’s Chief Economist Sam Khater said, “Reaching its highest point since mid-November, the 30-year fixed-rate mortgage averaged 2.81 percent this week. Economic spending has improved, due to the most recent stimulus, but supply chain shortages are causing downstream inflation, leading to higher mortgage rates. While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.”