The average for a 30-year, fixed-rate mortgage moved notably higher last week. Freddie Mac economist blames “the trajectory of both the economy and the pandemic.”
MCLEAN, Va. – The 30-year fixed-rate mortgage (FRM) averaged 3.09%, according to Freddie Mac’s weekly survey. It’s a notable increase from last week’s 3.05% and 2.99% the week before that.
“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” says Sam Khater, Freddie Mac’s chief economist. “Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages.”
Khater doesn’t see the increase as a problem for the housing market, however. “Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year,” he says.
Average mortgage rates for the week of Oct. 21, 2021:
- The 30-year fixed-rate mortgage averaged 3.09% with an average 0.7 point for the week, up from last week’s 3.05%. A year ago at this time, it averaged 2.80%.
- The 15-year fixed-rate mortgage averaged 2.33% with an average 0.7 point, up from last week’s 2.30%. A year ago, the 15-year FRM averaged 2.33%.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.54% with an average 0.3 point, down slightly from last week’s 2.55%. A year ago, the 5-year ARM averaged 2.87%.
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