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Borrowing costs held mostly steady this week, but how long will the reprieve last?
Mortgage rates continue to follow the trend of the 10-year Treasury yield and have stayed flat over the last three weeks.
As the economic recovery continues through the spring and summer, mortgage rates are expected to resume their upward trajectory, says Sam Khater, Freddie Mac’s chief economist.
But for now, “since mortgage rates are still near historic lows, many people are rushing to benefit from these rates,” Nadia Evangelou, National Association of REALTORS®’ senior economist and director of forecasting, writes on the association’s blog.
Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 3:
- 30-year fixed-rate mortgages: averaged 3.55%, with an average 0.8 point, unchanged from last week. Last year at this time, 30-year rates averaged 2.73%.
- 15-year fixed-rate mortgages: averaged 2.77%, with an average 0.7 point, dropping from last week’s 2.80% average. A year ago, 15-year rates averaged 2.21%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.71%, with an average 0.3 point, rising slightly from last week’s 2.70% average. A year ago, 5-year ARMs averaged 2.78%.
Freddie Mac reports commitment rates along with average points to better reflect the total upfront costs of the mortgage.