MCLEAN, Virginia. October 24, 2020 (Biz Republic) — U.S. long-term mortgage rates slipped this week as the key 30-year loan marked a new all-time low for the 11th time this year. Home loan rates have notched a year-long decline amid economic anxiety in the recession set off by the coronavirus pandemic. Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year benchmark loan edged down to 2.80% from 2.81% last week. By contrast, the rate averaged 3.75% a year ago.
Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.80 percent, the lowest rate in our survey’s history which dates back to 1971. “Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so,” said Sam Khater, Freddie Mac’s Chief Economist.
“Mortgage rates today are on average more than a full percentage point lower than rates over the last five years. This means that most low- and moderate-income borrowers who purchased during the last few years stand to benefit by exploring refinancing to lower their monthly payment.” 30-year fixed-rate mortgage averaged 2.80 percent with an average 0.6 point for the week ending October 22, 2020, down from last week when it averaged 2.81 percent.
A year ago at this time, the 30-year FRM averaged 3.75 percent. 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.6 point, down from last week when it averaged 2.35 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.87 percent with an average 0.3 point, down from last week when it averaged 2.90 percent.
A year ago at this time, the 5-year ARM averaged 3.40 percent. The PMMS is focused on conventional, conforming, fully-amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Borrowers may still pay closing costs which are not included in the survey.
Real estate database Zillow noted that home sales have continued an impressive run into September, as buyers have “stayed their course” despite the ongoing pandemic and the persistent shortage of available homes for sale. Existing home sales last month rose at the fastest annual rate since 2010. In a sign that job losses may have eased slightly but are still at historically high levels, the government reported Thursday that the number of laid-off Americans seeking unemployment benefits fell last week to 787,000.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since its creation by Congress in 1970, they’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. They are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers.
