Mortgage Rates Rise Again, Nears 3 Percent

Freddie Mac's Primary Mortgage Market Survey reported the 30-year fixed-rate mortgage averaged 2.97% for the week ending Feb. 25, 2021, up substantially from last week's average of 2.81%. A year ago, the 30-year FRM averaged 3.45%.

"Optimism continues as the economy slowly regains its footing, thus affecting mortgage rates," said Sam Khater, Freddie Mac’s chief economist. "Though rates continue to rise, they remain near historic lows. However, when combined with demand-fueled rising home prices and low inventory, these rising rates limit how competitive a potential homebuyer can be and how much house they are able to purchase."

Additionally, the 15-year fixed-rate mortgage averaged 2.34%, up from last week's average of 2.21%. A year ago the 15-year FRM averaged 2.95%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99%, up from last week's average of 2.77%.