30-Year Mortgage Rate Slightly Higher in the Week Ending April 1, 2021

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending April 1, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.18% with an average 0.7 point, up from last week when it averaged 3.17%. A year ago, at this time, the 30-year FRM averaged 3.33%. The 15-year fixed-mortgage averaged 2.45% with an average 0.6 point, unchanged from last week. A year ago, at this time, the 15-year FRM averaged 2.82%. In prepared remarks, Freddie Mac’s Chief Economist Sam Khater said, “Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market. In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today.” Khater added, “We even see that purchase demand is diminished today as compared to late May and early June of 2020, when mortgage rates were the same level. This is confirmation that while purchase demand remains strong, the marginal buyer is feeling the affordability squeeze resulting from the increases in mortgage rates and home prices we’ve experienced in recent months.”