Skip to main content

Mortgages Rates Reach Another All-Time Low

Navi Persaud
Oct 15, 2020
Chalkboard drawing of house and mortgage rates chart. Credit: iStock.com/mphillips007

Freddie Mac's Primary Mortgage Market Survey reported the 30-year fixed-rate mortgage averaged 2.81%, the lowest rate in the history of the survey dating back to 1971. At the same period in 2019, the 30-year fixed-rate mortgage averaged 3.69%.

"Low mortgage rates have become a regular occurrence in the current environment," said Sam Khater, Freddie Mac’s chief economist. "As we hit yet another record low, the tenth record this year, many people are benefitting as refinance activity remains strong. However, it’s important to remember that not all people are able to take advantage of low rates given the effects of the pandemic."

Additionally, the 15-year fixed-rate mortgage averaged 2.35%, down from 2.37% last week. A year ago, the 15-year fixed-rate mortgage averaged 3.15%. The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.90%, slightly down from its 2.89% average the previous week.

"The economy continues to recover, albeit at a slowing pace," said Doug Duncan, Fannie Mae senior vice president and chief economist, in remarks from Fannie's Economic and Strategic Research Group. "Our view is that the combined decline of GDP in 2020 will likely be regained in 2021 for net-zero growth over the two-year period. This suggests that if the labor force grows as expected, then the unemployment rate must also end 2021 higher than pre-crisis levels, as shown in our forecast. Meanwhile, housing continues its multi-year theme of historic supply constraints. Strong demand-side drivers, including low mortgage rates and a surge of millennials looking to purchase homes, are contributing to significant home price appreciation, particularly as many older homeowners continue to age in place and other would-be home-sellers adopt a more conservative posture due to COVID-19 concerns, further limiting supply."

Freddie Mac Primary Mortgage Market Survey 10/15/20
Published
Oct 15, 2020
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021