Mortgage rates continue to hover at all-time lows, marking the ninth consecutive week that rates have averaged below 3%.
“The tug-of-war between the economic recovery and rising COVID-19 cases has left mortgage rates moving sideways over the last few weeks,” said Sam Khater, Freddie Mac’s chief economist. “Overall, rates continue to be low, with a window of opportunity for those who did not refinance under 3%. From a homebuyer perspective, purchase application demand is improving, but the major obstacle to higher home sales remains very low inventory for consumers to purchase.”
Additional housing inventories may be on the horizon, however. The National Association of REALTORS® reported this week that more listings arrived on the market in July, a trend that could continue into the fall months. Housing inventories increased 7.3% in July compared to June.
Low mortgage rates likely will remain a strong pull for potential home buyers. A rush to lock in a low rate may continue to propel the housing market. NAR predicts the 30-year fixed-rate mortgage to rise, expecting it to average 3.2% from October through December.
Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 26:
30-year fixed-rate mortgages: averaged 2.87%, with an average 0.6 point, up slightly from last week’s 2.86% average. A year ago, 30-year rates averaged 2.91%.
15-year fixed-rate mortgages: averaged 2.17%, with an average 0.6 point, rising slightly from last week’s 2.16% average. A year ago, 15-year rates averaged 2.46%.
5-year hybrid adjustable-rate mortgages: averaged 2.42%, with an average 0.2 point, falling slightly from last week’s 2.43% average. A year ago, 5-year ARMs averaged 2.91%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.