Mortgage rates mostly remained unchanged this week, continuing a monthlong track of keeping at their historical lows, Freddie Mac reports in its weekly mortgage market survey.
'Mortgage rates have been relatively stable, hovering near record lows, for the past four weeks, which is helping to spur new home construction,” says Frank Nothaft, Freddie Mac’s chief economist.
Here’s a closer look at national averages for mortgage rates for the week ending Feb. 21, according to Freddie Mac:
- 30-year fixed-rate mortgages: inched up to a 3.56 average this week, with an average 0.8 point, up from last week’s 3.53 percent. A year ago at this time, 30-year rates averaged 3.95 percent.
- 15-year fixed-rate mortgages: remained unchanged this week at 2.77 percent, with an average 0.8 point. Last year at this time, 15-year rates averaged 3.19 percent.
- 5-year adjustable-rate mortgages: averaged 2.64 percent, with an average 0.5 point, also holding the same as last week. Last year at this time, 5-year ARMs averaged 2.80 percent.
- 1-year ARMs: averaged 2.65 percent, with an average 0.4 point, up slightly from last week’s 2.61 percent average. Last year at this time, 1-year ARMs averaged 2.73 percent.
Fannie Mae economists projections for this year:
- Mortgage rates: Rates will likely edge up slightly this year with 30-year fixed-rate mortgages projected to average 3.8 percent this year and rise to 4.4 percent in 2014.
- Home prices: Fannie Mae economists predict that the median price of existing homes will increase 2.3 percent on an annual basis this year, reaching $181,000. The median price of a new home will likely increase 1.6 percent to $248,000. For 2014, economists predict that home prices will increase an extra 2.8 percent.
- Home sales: Existing-home sales will likely rise 11.5 percent in 2013, and new-home sales will rise 12.5 percent, economists predict.
Source: Freddie Mac, “Fannie Mae: Housing Is 'on a Sustained Growth Path',” Inman News (Feb. 21, 2013)
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