E Economics

U.S. 30-Year Mortgage Rates Exceed 3 Percent

08 March, 2021
30-Year Mortgage Rate



U.S. 30-year mortgage rates rose for the third straight week. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.02 percent for the week ending March 4, 2021, exceeding the 3 percent threshold for the first time since July 2020 and up from the previous week when it averaged 2.97 percent. A year ago at this time, the 30-year FRM averaged 3.29 percent.

 

30-Year Mortgage Rate

 

Over the same period, the report also showed the 15-year fixed-rate mortgage averaged 2.34 percent (unchanged from last week). A year ago at this time, the 15-year FRM averaged 2.79 percent. In this context, Sam Khater, Freddie Mac’s Chief Economist noted “Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable.
 

 

US 30-year mortgage rates have steadily declined since mid-2018 and reached record low levels in late 2020. However, the recent spike in Treasury yields — partly explained by stronger growth and inflation prospects — could mean that the bottom is now behind us.