Freddie Mac today released the results of its Primary Mortgage Market Survey®, showing that the 30-year fixed rate mortgage (FRM) averaged 3.11 percent.
“Mortgage rates have effectively been moving sideways despite the increase in new COVID cases. This is because incoming economic data suggests that the economy remains on firm ground, particularly cyclical industries like manufacturing and housing. Moreover, low interest rates and high asset valuations continue to drive consumer spending,” said Sam Khater, Freddie Mac’s Chief Economist. “While we do expect rates to rise, the push of the first-time homebuyer demographic that’s been propelling the purchase market will continue in 2022 and beyond.”
Mortgage rates: December 30, 2021:
- The 30-year fixed-rate mortgage averaged 3.11 percent with an average 0.7 point for the week ending December 30, 2021, up from last week when it averaged 3.05 percent. A year ago at this time, the 30-year FRM averaged 2.67 percent.
- The 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.7 point, up from last week when it averaged 2.30 percent. A year ago at this time, the 15-year FRM averaged 2.17 percent.
The PMMS® is focused on conventional, conforming, fully-amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Borrowers may still pay closing costs which are not included in the survey.
So what does that mean for you? Securing even a fraction of a percentage lower interest rate on your mortgage can save you tens of thousands of dollars over the life of your loan. And as the country (and the economy) recovers from the Coronavirus pandemic, potential buyers could see mortgage rates drop even lower than they are today — making 2021 a great time to invest and buy a new home.