Mortgage rates continued to hover at record lows this week, with the average rate for a 30-year fixed-rate mortgage (FRM) at 2.66%, down slightly from 2.67% last week and down from 3.74% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
“The housing market is poised to finish the year strong as low mortgage rates continue to fuel homebuyer demand and refinance activity,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Moving into 2021, we expect rates to hold steady but the key driver in the near term will be the trajectory of the COVID-19 pandemic and the execution of the vaccine.”
The average rate for a 15-year fixed-rate mortgage was 2.19%, down from 2.21% last week and down from 3.19% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.79%, unchanged from last week but down from 3.45% a year ago.
The record low rates continue to fuel applications for refinances, which increased 4% during the week ended December 18, according to the Mortgage Bankers Association’s Weekly Applications Survey.