Rates hit another low last week, however this data did not reflect the increase which took place later in the week. For the week ending January 7, Freddie Mac announced that 30-year fixed rates fell two ticks to 2.65% from 2.67% the week before. The average for 15-year loans also decreased to 2.16% and the average for five-year ARMs rose to 2.75%. But on the day of the election in Georgia as Democrats gained two more seats in Congress, there has been a reversal in rates that we haven’t seen since President-elect Joe Biden won the election on November 4th 2020. Rates have worsened to the highs that we saw back in July of 2020, giving back all the betterment that we’ve enjoyed these 7 months. A year ago, 30-year fixed rates averaged 3.44%, approximately 1.00% higher than today. “A new year, a new record low mortgage rate. Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season,” said Sam Khater, Chief Economist, Freddie Mac.
May I suggest that if you are considering refinancing or purchasing a home that you give ABBA First Mortgage a call soon as rates are still amongst the all time lows in the history books of mortgage rates since the inception of recording interest rates for mortgages. Call 910-332-0650 and speak with Rich Biagini for all your mortgage financing needs.
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.