The new year got off to a good start for home buyers looking
for a mortgage. As of January 7, the average rate for 30-year mortgages was
just 2.65%, a remarkable low, and the average rate for 15-year mortgages fell to
2.16%, according to Freddie Mac. *
A year ago, the average 30-year mortgage rate was more than a
full percent higher, at 3.72%. Even a few months ago rates were higher than
now, with the average 30-year rate in mid-October at 2.81% and the 15-year rate
at 2.35%.
Exceptionally low mortgage rates will continue to act as an
incentive for home buyers, some of whom were left out of the 2020 market because
they couldn’t find a home to buy. The lower rates—resulting in lower
monthly payments—should provide some counterbalance to higher home
prices, pushed up during 2020 by low supply.
*Freddie Mac plays an important role in increasing liquidity
and stability in the housing market. It purchases mortgages from lenders, providing
cash for lenders to make additional loans to home buyers.
Interest rate data from Freddie Mac as of January 7, 2021.
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See more of Annette’s articles on
related real estate topics. If you’re planning
to buy or sell a home, contact Annette at (610) 247-7892 or annette@preferredhomes.com
#Realestate #housing
#mortgagerates
#FreddieMac
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(c) 2021 by Annette Nelson. All Rights Reserved
