E Economics

U.S. 30-Year Mortgage Rates Hit A 8-Month High

12 March, 2021



U.S. 30-year mortgage rates rose for the fourth straight week. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.05 percent for the week ending March 11, 2021 (highest since July 2020) and up from the previous week when it averaged 3.02 percent. A year ago at this time, the 30-year FRM averaged 3.36 percent.

 

30-Year-Mortgage-Rate

 

Over the same period, the report also showed the 15-year fixed-rate mortgage averaged 2.38 percent (up from 2.34 percent last week and the highest level since September 2020). A year ago at this time, the 15-year FRM averaged 2.77 percent.

 

15-year-mortgage-rate

 

Concerns over the potential for higher inflation, a strong economic recovery and a massive federal government deficits have pushed Treasury yields and mortgage rates higher. Therefore, it seems that the bottom is probably behind us. In this context, we saw earlier this week that mortgage refinancing index fell four out of the last five weeks and reached the lowest level since October 2020.

 

refinancing index

 

However, Sam Khater, Freddie Mac’s Chief Economist said “even as rates rise modestly, the housing market remains healthy on the cusp of spring homebuying season. Homebuyer demand is strong and, for homeowners who have not refinanced but are looking to do so, they have not yet lost the opportunity.”