Mortgage rates inched up this week with the 30-year fixed rate average remaining just under 3 per cent. Freddie Mac's weekly Primary Mortgage Market Survey released today found the 30-year fixed rate mortgage averaged 2.99 per cent.
While mortgage rates remain below three per cent, homebuyers continue to see house prices escalate. Freddie Mac's Chief Economist Sam Khater said, "home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough,” He added there are many potential homebuyers who would like to take advantage of low mortgage rates, but competition is strong. For homeowners, Khater said, "the low mortgage rates continue to make refinancing an option worth considering."
Homebuyers should not become discouraged by the current level of house prices. Some, particularly first time homebuyers, may need to adjust their price range and the type of housing they're looking for. Low mortgage rates may afford them the opportunity to build equity in a new home so that they may in time be able to move up into the house of their dreams.
•30-year fixed-rate mortgage averaged 2.99 percent with an average 0.6 point for the week ending June 3, 2021, up from last week when it averaged 2.95 percent. A year ago at this time, the 30-year FRM averaged 3.18 percent.
•15-year fixed-rate mortgage averaged 2.27 percent with an average 0.6 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.62 percent.
•5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.64 percent with an average 0.2 point, up from last week when it averaged 2.59 percent. A year ago at this time, the 5-year ARM averaged 3.10 percent.