Mortgage rates have remained below 3% for more than two months. And they likely aren’t going to drop much further, according to Freddie Mac.
“The yearlong slide in mortgage rates seems to be ending as rates have flattened over the last month and the economic rebound has slowed,” says Sam Khater, Freddie Mac’s chief economist. “But with near-record-low rates, buyer demand remains robust with strong first-time buyers coming into the market. The demand is particularly strong in more affordable regions of the country such as the Midwest, where home prices are accelerating at the highest rates over the last two decades.”
Freddie Mac reported the following national averages with mortgage rates for the week ending Oct. 8:
- 30-year fixed-rate mortgages: Averaged 2.87%, with an average 0.8 point, slightly falling from last week’s 2.88% average. A year ago, 30-year rates averaged 3.57%.
- 15-year fixed-rate mortgages: Averaged 2.37%, with an average 0.7 point, slightly up from last week’s 2.36% average. A year ago, 15-year rates averaged 3.05%.
- Five-year hybrid adjustable-rate mortgages: averaged 2.89%, with an average 0.2 point, down from last week’s 2.90% average. A year ago, 5-year ARMs averaged 3.35%.
Freddie Mac reports average commitment rates along with average points to reflect the total upfront cost of obtaining the mortgage.