According to Freddie Mac, mortgage interest rates rose gradually, with the 30-year fixed rate mortgage averaging 2.99%. Primary Mortgage Market Research®…
Here’s where the bets come in:
– 30 year fixed rate mortgage: Average 2.99% with an average of 0.6 points for the week ending June 3, 2021, compared to the previous week, when it averaged 2.95%. Last year, the 30-year FRM averaged 3.18%.
– mortgage with a fixed interest rate for 15 years: Average 2.27% with an average of 0.6 points, unchanged from last week. Last year, the 15-year average FRM was 2.62%.
– Treasury Indexed Hybrid Adjustable Rate Mortgage for 5 Years (ARM): 2.64% on average with an average of 0.2 points compared to last week, when it averaged 2.59%. Last year, the average for the 5-year-old ARM was 3.10%.
The competitive environment persists, creating problems for home buyers even at low market interest rates and perhaps even encouraging potential sellers to stay in their home and refinance instead.
While rates have indeed risen, they still remain historically low and below 3% – and may still soften competition if new stocks emerge.
“Home prices continue to rise while stocks remain low and new home construction cannot happen fast enough,” said Sam Hather, chief economist at Freddie Mac. “There are many potential home buyers who would like to take advantage of the low mortgage rates, but the competition is fierce. For homeowners, however, the continued low rates make refinancing worth considering. ”
Liz Dominguez is Senior Online Editor at RISMedia. Send her your real estate news ideas to email@example.com…