Mortgage Rates Remain at New Record Lows in the Week Ending 10th December 2020

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending 10^th December 2020. The PMMS shows that 30-year fixed-rate mortgage averaged 2.71% with an average 0.7 point, unchanged from last week. A year ago, at this time, the 30-year FRM averaged 3.73%. The 15-year fixed-mortgage averaged 2.26% with an average 0.6 point, unchanged from last week. A year ago, at this time, the 15-year FRM averaged 3.19%. In prepared remarks, Freddie Mac’s Chief Economist Sam Khater said, “Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher. Mortgage spreads – the difference between mortgage rates and the 10-year Treasury rate – are declining from their elevated levels earlier this year. Although today’s mortgage spread is about 1.8% and still has some room to move down if the 10-year Treasury continues to rise, it’s encouraging to see that the spread is almost back to normal levels.”