Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) reports that the 30-year fixed-rate mortgage rate averaged 2.88% for the week ending Sept. 9.
Mortgage details:
– 30-year fixed-rate mortgage averaged 2.88% with an average 0.7 point for the week ending Sept. 9, 2021, up slightly from last week when it averaged 2.87%. Last year, the 30-year FRM averaged 2.86%.
– 15-year fixed-rate mortgage averaged 2.19% with an average 0.6 point, up slightly from last week when it averaged 2.18%. Last year, the 15-year FRM averaged 2.37%.
– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.42% with an average 0.3 point, down slightly from last week when it averaged 2.43%. Last year, the 5-year ARM averaged 3.11%.
The takeaway:
“While the economy continues to grow, it has lost momentum over the last two months due to the current wave of new COVID-19 cases that has led to weaker employment, lower spending and declining consumer confidence,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “Consequently, mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances. The net result for housing is that these low and stable rates allow consumers more time to find the homes they are looking to purchase.”
“The Freddie Mac fixed rate for a 30-year loan was relatively stable again this week. This steadiness reflects the mixed jobs report that was released before the Labor Day holiday. While the economy continued to add jobs in August, the pace was lower than expected, but the unemployment rate improved nonetheless,” said realtor.com® Chief Economist Danielle Hale in a statement. “With little economic data on tap this week, mortgage rates are likely to remain in their holding pattern. However, with inflation a simmering concern, when mortgage rates do begin to move, they will most likely move higher. For homebuyers and refinancers alike, mortgage rates remain favorable, but may not remain so for long.
“Despite a slip in pending home sales, real estate markets remain active heading into the fall as the gap between those saying it’s a good time to buy and those saying it’s good time to sell narrowed slightly, as consumers recognize that we’re entering a more balanced market,” added Hale. “Buyers can continue to take advantage of low mortgage rates to make a move and more sellers, particularly in smaller, more affordable home price tiers are creating opportunity, especially for first-time buyers who tend to shop for smaller homes.”
