Although mortgage rates have been steady for the past week, their volatility since the beginning of the year have created challenges for those needing a loan.
According to a report by Freddie Mac, the 30-year fixed-rate mortgage remained at an average of 3.33 percent this past week.
The 5-year Treasury-indexed hybrid adjustable rate mortgage also remained the same over the last week at an average of 3.4 percent. The 15-year fixed rate mortgage declined to 2.77 percent.
However, the reports by Freddie Mac may not represent the entire market accurately. The report is based on a survey of lenders, including a mix of thrifts, credit unions, commercial banks and mortgage lending companies. Lenders are surveyed in proportion to the share of the industry they represent.
The results are also weighted based on the most recent data regarding the dollar volume of conventional loans–those eligible for purchase by Freddie Mac or Fannie Mae. Therefore, the survey does not reflect the rates for loans backed by other agencies such as the Federal Housing Administration or the Department of Veterans Affairs.
Individuals who are in the market to buy a home right now and looking for mortgage financing should compare rates from lender to lender in “as short a period of time as possible” since they can fluctuate.
Lenders are currently dealing with the massive demand for refinancing due to the low interest rates while adapting to working remotely. Furthermore, many borrowers are seeking forbearance after the stimulus bill guaranteed that any homeowner with a federally-backed mortgage could delay payments by up to a year on their loan.
There is a possibility that rates could fall even lower. Historically, mortgage rates have roughly followed the same direction of the yield on the 10-year Treasury note which dropped below 1 percent beginning mid-March.