The question still stands: how low will mortgage rates go
Homebuyers looking to lock in mortgages would not be disappointed as mortgage rates hovered near record lows, with the 30-year fixed-rate mortgage (FRM) averaging 3.21% last week.
The 30-year mortgage rate was up slightly from the previous week's average of 3.18%, according to the results of the Freddie Mac Primary Mortgage Market Survey. Year over year, the 30-year FRM was down from 3.82% at this time in 2019.
Both the 15-year mortgage rate and 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) held steady at 2.62% and 3.10%, respectively. A year ago, the 15-year FRM averaged 3.26% while the 5-year ARM averaged 3.51%.
According to Freddie Mac Chief Economist Sam Khater, the low rates continue to cushion the housing market from the impact of the coronavirus crisis.
"The rebound in homebuyer demand continued this week, driven by mortgage rates that hover near record lows," Khater said. "This turnaround in demand, particularly by those who have higher incomes than the typical household, also reflects deferred sales from the spring."
