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Mortgage Rates Hit Another Record Low

Posted on September 16, 2020 by Anthony Vulin in Beverly Hills, Glendale, Hollywood Hills, Market Update, Real Estate, Santa Monica, Silver Lake, Uncategorized, West Hollywood

Just as some housing experts were predicting rates couldn’t get lower, they did. The 30-year fixed-rate mortgage reached a new all-time low, averaging 2.86% this week, according to Freddie Mac. “Mortgage rates have hit another record low due to a late-summer slowdown in the economic recovery,” says Sam Khater, Freddie Mac’s chief economist. “These low rates have ignited robust purchase demand activity, which has been growing at double-digit rates for four consecutive months. However, heading into the fall, it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 10:

  • 30-year fixed-rate mortgages: averaged 2.86%, with an average 0.8 point, dropping from last week’s 2.93% average. Last year at this time, 30-year rates averaged 3.56%. The previous all-time low for 30-year rates was set at the beginning of August, averaging 2.88%.
  • 15-year fixed-rate mortgages: averaged 2.37%, with an average 0.7 point, dropping from last week’s 2.42% average. A year ago, 15-year rates averaged 3.09%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.11%, with an average 0.2 point, rising from last week’s 2.93% average. A year ago, 5-year ARMs averaged 3.36%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

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