Mortgage rates were on the rise last week but remained just below 3%, offering borrowers another opportunity to lock in historically low rates.
Still, the National Association of REALTORS® cautions that borrowers should expect mortgage rates to increase modestly in the following months as the economy continues to recover. NAR forecasts the 30-year fixed-rate mortgage to average 3.20% in 2021.
“Home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough,” says Sam Khater, Freddie Mac’s chief economist. “There are many potential home buyers who would like to take advantage of low mortgage rates, but competition is strong. For homeowners, however, continued low rates make refinancing an option worth considering.”
Freddie Mac reports the following national averages with rates for the week ending June 3:
- 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.6 point, up from last week’s 2.95% average. Last year at this time, 30-year rates averaged 3.18%.
- 15-year fixed-rate mortgages: averaged 2.27%, with an average 0.6 point, unchanged from last week. A year ago, 15-year rates averaged 2.62%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.64%, with an average 0.2 point, up from last week’s 2.59% average. A year ago, 5-year ARMs averaged 3.10%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.