Freddie Mac today released the results of its Primary Mortgage Market Survey®, showing that the 30-year fixed-rate mortgage (FRM) averaged 2.87 percent.
“Despite the recession, the very low mortgage environment has spurred many first-time homebuyers to jump into the real estate market,” said Sam Khater, Freddie Mac’s Chief Economist. “In August, first-time homebuyer activity rose 19 percent from July to the highest monthly level ever for Freddie Mac. The first-time homebuyer driven rebound in the housing market has come at a critical time for the economy.”
Mortgage Rates, as of September 17, 2020:
- The 30-year fixed-rate mortgage averaged 2.87 percent with an average 0.8 point for the week ending September 17, 2020, up slightly from last week when it averaged 2.86 percent. A year ago at this time, the 30-year FRM averaged 3.73 percent.
- The 15-year fixed-rate mortgage averaged 2.35 percent with an average 0.8 point, down from last week when it averaged 2.37 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent with an average 0.3 point, down from last week when it averaged 3.11 percent. A year ago at this time, the 5-year ARM averaged 3.49 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 2020 a great time to invest and buy a new home.