Mortgage rates have remained under 3%, according to the Freddie Mac Primary Mortgage Market Survey (PMMS).
The 30-year fixed-rate mortgage dipped even lower for the week ending Oct. 1, the PMMS showed. The 30-year FRM averaged 2.88%, down from 2.90% the week prior. A year ago, it averaged 3.65%.
The 15-year fixed-rate mortgage also dropped week over week, down from 2.40% to 2.36%. Last year, the 15-year FRM was 3.14%. Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage stayed unchanged at 2.90%. A year ago at this time, the 5-year ARM averaged 3.38%.
“As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” said Freddie Mac Chief Economist Sam Khater. “We’re seeing potential homebuyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity, including high home prices, low inventory and lender capacity.”
Last month, the Federal Reserve promised to keep interest rates near zero until the labor market recovers from the coronavirus crisis.