The average rate for a 30-year fixed-rate mortgage dipped to 2.88% this week, down slightly from 2.90% last week, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).
A year ago, the average rate for a 30-year was 3.65%.
“As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” says Sam Khater, chief economist for Freddie Mac. “We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory and lender capacity.”
The average rate for a 15-year fixed-rate mortgage was 2.36%, down from 2.40% the previous week and down from 3.14% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.90%, flat compared with the previous week but down from 3.38% a year ago.