For the week ending January 28, Freddie Mac announced that 30-year fixed rates fell to 2.73% from 2.77% the week before. The average for 15-year loans also decreased to 2.2% and the average for five-year ARMs remained at 2.8%. A year ago, 30-year fixed rates averaged 3.51%, more than 0.75% higher than today. “As the market reacts to a new administration in Washington and COVID-19 driven economic malaise, mortgage rates continued to decrease this week, just slightly. Even as house prices increase at the fastest rate we’ve seen in years, competition to buy is strong given the low inventory that exists across the country. The fact that there are not enough homes to meet demand is going to be an ongoing issue for the foreseeable future,” said Sam Khater, Chief Economist, Freddie Mac.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.