“It’s Groundhog Day for mortgage rates” – Freddie Mac
Mortgage rates hardly moved this week, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday.
“It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months,” said Freddie Mac chief economist Sam Khater. “The holding pattern in rates reflects the markets’ view that the prospects for the economy have dimmed somewhat due to the rebound in new COVID cases.”
The 30-year fixed-rate mortgage has essentially remained unchanged in the past six weeks, dropping just two basis points to 2.86% for the week ending September 16. The benchmark home loan rate was 2.87% a year ago.
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The 15-year fixed-rate mortgage slipped seven basis points to 2.12% week over week. It averaged 2.35% at this time last year. Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was up nine basis points to 2.51%. A year ago, the five-year ARM averaged 2.96%.
“While our collective attention is on the pandemic, fundamental changes in the economy are occurring, such as increased migration, the extended continuation of remote work, increased use of automation, and the focus on a more energy-efficient and resilient economy. These factors will likely lead to significant investment and new post-pandemic economic models that will spur economic growth,” Khater said.
