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Mortgage rates held steady overall this week, a welcome relief to home shoppers who may have been watching them rise week after week since the beginning of the year.

The 30-year fixed-rate mortgage averaged 3.55% this week, Freddie Mac reports.

“Following a month-long rise, mortgage rates effectively stayed flat this week,” says Sam Khater, Freddie Mac’s chief economist. “Recent rate increases have yet to significantly impact purchase demand, as history demonstrates that potential home buyers who are on the fence will often enter the market at the state of rate increase cycles.”

Economists are predicting that mortgage rates will continue to gradually increase over this year. The National Association of REALTORS® predicts rates to average 3.9% by the end of this year.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 27:

  • 30-year fixed-rate mortgages: averaged 3.55%, with an average 0.7 point, dropping slightly from last week’s 3.56% average. Last year at this time, 30-year rates averaged 2.73%.
  • 15-year fixed-rate mortgages: averaged 2.80%, with an average 0.6 point, rising slightly from last week’s 2.79% average. A year ago, 15-year rates averaged 2.20%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.70%, with an average 0.2 point, rising from last week’s 2.60% average. A year ago, 5-year ARMs averaged 2.80%.

Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining the mortgage.

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