Mortgage loan company Freddie Mac said in a report released Thursday that the average 30-year fixed-rate mortgage in the U.S. has once again dropped below 3% in 2021.
The report said 30-year FRM averages are now 2.98%; 5-year Treasury-indexed hybrid adjustable rate mortgage averages are 2.54%; and the rate for a 15-year loan fell to 2.26% from 2.34% last week.
Last week, the average for the 30-year home loan was 3.02%. A year ago, the rate was 3.07%.
The Labor Department also recently reported that the number of Americans seeking unemployment benefits has fallen to its lowest level since the pandemic began last year. The government said those figures signal that the job market and the economy are bouncing back from their pandemic-related depths.
Low rates may not last long
Despite low mortgage rates, the market has seen a decline in demand for both refinance and purchase mortgages.
“Economic growth remains steady and is bolstering more segments of the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “Although low and stable mortgage rates have kept the housing market booming over recent months, a deterioration in affordability and for-sale inventory has led to a market slowdown.”
Experts aren’t confident that low mortgage rates will last much longer. It’s widely believed that mortgage rates will spend the second half of the year inching upwards rather than downward, and many experts recommend that homebuyers take full advantage of the current market.