E Economics

US Mortgage Rates Remained Under 3% For The Third Straight Week

06 May, 2021
30-year mortgage rate

US mortgage rates remained under 3 percent for the third straight week, reaching the lowest since mid-February. According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 2.96 percent for the week ending May 6, 2021. It was down from the previous week when it averaged 2.98 percent. A year ago at this time, the 30-year FRM averaged 3.26 percent.

Over the same period, Freddie Mac report also showed the 15-year fixed-rate mortgage fell slightly. It averaged 2.30 percent (down from 2.31 percent last week). A year ago at this time, the 15-year FRM averaged 2.73 percent.

In this context, Sam Khater, Freddie Mac’s Chief Economist, said “Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.

However, data from the Mortgage Bankers Association (MBA) for the week ending April 30, showed mortgage loan application volume, decreased 0.9 percent on a seasonally adjusted basis from one week earlier. In the details, “The Refinance Index increased 0.1 percent from the previous week and was 17 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier.”