Published January 26, 2021

New Record Low For Mortgage Rates Set In First Week of 2021!

Written by Shanna Day Team

New Record Low For Mortgage Rates Set In First Week of 2021! header image.

In spite of predictions about mortgage rates gradually increasing in 2021, the first week of the new year opened with a new record low for mortgage rates. Freddie Mac, which has been monitoring weekly rate fluctuations for fifty years now, recorded an all-time low of 2.65% for the average 30-year mortgage for the week ending January 7.

Notably, the 15-year fixed-rate mortgage averaged 2.16 percent while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent for the same week. All three rates reflected drops from their average for the same week a year ago- the 30-year fixed-rate mortgage was at 3.64 percent, the 15-year fixed-rate mortgage averaged 3.07 while the 5-year ARM had a 3.30 percent average.

While this may be welcome news for those looking to buy a home this year, prospective homebuyers need to keep in mind that housing affordability has been trending on the downside. Savings generated by the low mortgage rates might eventually be offset by home prices if they continue to increase over time. And predictions of rising mortgage rates this year are not without ground, as a shift in the factors contributing to dropping rates are beginning to be observed.

If you are thinking about buying a home right now and taking advantage of the great interest rates, call the Shanna Day Team at 480-415-7616. Our lender has marked their rate sheets even LOWER than the advertised loan rates! Call us now for details and let’s get you moved into the home of your dreams!

Source Article:

www.inman.com