E Economics

US 30-Year Mortgage Rates Remain Below 3%

30 April, 2021
US 30-year mortgage rates

US 30-year mortgage rates remained below 3 percent for the second straight week. According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 2.98 percent for the week ending April 29, 2021. It was up from the previous week when it averaged 2.97 percent. A year ago at this time, the 30-year FRM averaged 3.23 percent.

Yesterday, Mortgage News Daily confirmed that “Well-qualified borrowers are being quoted under 3% for conventional 30yr fixed purchases“.

US 30-year mortgage rates


Over the same period, Freddie Mac report also showed the 15-year fixed-rate mortgage rebounded slightly. It averaged 2.31 percent (up from 2.29 percent last week). A year ago at this time, the 15-year FRM averaged 2.77 percent.

In this context, Sam Khater, Freddie Mac’s Chief Economist, said “The good news is that with rates under three percent, refinancing continues to be attractive for many borrowers who financed before 2020. But, for eager buyers, especially first-time homebuyers, inventory continues to be extremely tight and competition for available homes to purchase remains high.

The situation looks particularly unfavourable for first-time homebuyers. The latest NAR report showed that housing inventory reached a record low in March. In the meantime, housing prices kept booming, sometimes at an unprecedented pace. As an example, the FHFA index rose 12.2 percent YoY in February, the largest increase on record.

As a result, the housing market has become a clear focus for policymakers. On Wednesday, Federal Reserve Chair Jerome Powell noted that the Fed would be watching housing carefully — even if it was no immediate cause for concern.