Mortgage Rates Drop, Homeownership Desire Increases

Feb 09, 2017

Average mortgage rates took a slight dip in the latest Freddie Mac Primary Mortgage Market Survey (PMMS).

The 30-year fixed-rate mortgage (FRM) averaged 4.17 percent for the week ending Feb. 9, down from last week when it averaged 4.19 percent. The 15-year FRM this week averaged 3.39 percent, down from last week when it averaged 3.41 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.21 percent this week, down from last week when it averaged 3.23 percent.

“Rates are at about the same level at which they started the year and have stayed within a two-basis-point range over the past three weeks,” said Freddie Mac Chief Economist Sean Becketti. “Mixed economic releases such as Friday's jobs report and uncertainty about the Administration's fiscal policies have contributed to the holding pattern in rates."

Nonetheless, the desire to pursue homeownership has not abated. A new report from Bankrate.com determined that 59 million American adults (one in four) are considering buying a home this year. Furthermore, almost two in five minorities affirmed at least some likelihood of buying a house in 2017, more than double the percentage of white Americans who responded the same way. And 20 percent of older Millennials (ages 27-36) and Gen Xers (37-52) indicated they are very or somewhat likely to take the plunge.

“Among millennials, there's a lot of pent-up demand for home buying,” said Holden Lewis, Bankrate.com’s senior mortgage analyst. “They have been stymied by stagnant wages, student loans and a lack of available starter homes. If enough affordable homes are put on the market, we might see a surge of first-time homebuyers in their early to mid-30s.”

About the author

Phil Hall

Link copied

Published

Feb 09, 2017

Military Lending

MISMO, VA Push To Digitize Veteran Loan Eligibility Process

New data standards aim to streamline Certificate of Eligibility requests, reduce manual processing and speed VA loan originations

MISMO has released new standardized data mappings designed to help lenders process VA loan eligibility requests more efficiently as part of the U.S. Department of Veterans Affairs' ongoing digital transformation of its Loan Guaranty program.Developed in collaboration with th...

Non-QM

Untapped Home Equity Creates Opportunity For Alternative-Doc HELOCs

New Home Equity Gap Index estimates U.S. homeowners hold $11 trillion in available equity as some Non-QM lenders expand options for self-employed borrowers

A new Home Equity Gap Index suggests that billions of dollars in home equity remain largely untapped, creating an opportunity for Non-QM lenders offering alternative-documentation HELOCs to borrowers who may not qualify under traditional underwriting.According to The Mortgag...

Sep

San Francisco, CA

More from

Industry News

President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Industry News

Jun 24, 2026

Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Industry News

Jun 18, 2026

Fed Holds Rates Steady, But Outlook Dims For Mortgage Rate Relief

The Federal Reserve left rates unchanged but updated projections show more policymakers expecting additional hikes

Industry News

Jun 18, 2026

Congress Nears Final Vote On 21st Century ROAD to Housing Act

Senate voted 87-8 to advance House-amended package, with final votes expected in coming days

Industry News

Jun 17, 2026

Florida Pending Sales Signal Strong Summer Housing Market

Closed sales rise for a ninth straight month as inventory gives buyers more negotiating power