Mortgage

Freddie Mac: U.S. economic optimism spurs growth in mortgage rates

This week, the 30-year fixed-rate mortgage averaged 3.75%

This week, the average U.S. fixed rate for a 30-year mortgage rose to 3.75%. That’s 6 basis points above last week’s 3.69% but still more than a percentage point below the 4.94% of the year-earlier week, according to the Freddie Mac Primary Mortgage Market Survey.

The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy, said Sam Khater, Freddie Mac’s Chief Economist.

“Due to the improved economic outlook, purchase mortgage applications rose 15% over the same week a year ago, the second-highest weekly increase in the last two years,” Khater said. “Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.”

The 15-year FRM averaged 3.2% this week, rising from last week’s 3.13%. This time last year, the 15-year FRM came in at 4.36%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.44%, increasing from last week’s rate of 3.39%. In 2018, the 5-year ARM sat much higher at  4.14%.

The image below highlights this week’s changes:

Most Popular Articles

If Biden wins, what happens to Fannie and Freddie?

If former Vice President Joe Biden wins the White House, what will happen to the Trump administration’s plans to free Fannie Mae and Freddie Mac from conservatorship? For now, more conservatorship, said Jaret Seiberg, managing director of Cowen Washington Research Group.

Sep 14, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please