Mortgage rates have risen over the past few weeks but are still
lower than last Spring. As of February 25, 2021, the average rate for 30-year
mortgages was 2.97%, up from just 2.65% on January 7 of this year, according to
Freddie Mac.* The
average rate for 15-year mortgages rose to 2.34%, up from 2.16% over the same period.
The average 30-year rate is still almost a half percent
lower than it was a year ago, when the rate was 3.42%. Low mortgage rates continue to act as an
incentive for home buyers, some of whom were left out of the market last year because
they couldn’t find a home to buy. The low rates—which keep monthly
payments down—should provide some counterbalance to higher home
prices, pushed up during the last year 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 and chart courtesy of Freddie
Mac, February 25, 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
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#mortgagerates #FreddieMac
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