Mortgage Rates Set New Record Low Level in the Week Ending January 7th, 2021

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending January 7th, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.65% with an average 0.7 point down from last week when it averaged 2.67%. A year ago, at this time, the 30-year FRM averaged 3.64% The 30-year fixed rate mortgage is at its lowest level since the history of the Freddie Mac which dates back to 1971. The 15-year fixed-mortgage averaged 2.16% with an average 0.6 point, down slightly from last week when it averaged 2.17%. A year ago, at this time, the 15-year FRM averaged 3.07%. In prepared remarks, Freddie Mac’s Chief Economist Sam Khater said, “A new year, a new record low mortgage rate. 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 forces behind the drop-in rates have been shifting over the last few months and rates are poised to rise modestly this year. 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.”