Mortgage rates rose one basis point this week – they ended the year near record lows – and are expected to stay flat through 2021, according to Freddie Mac.
"All eyes have been on mortgage rates this year, especially the 30-year fixed rate, which has fallen more than a percentage point in the past 12 months and has driven real estate market activity in 2020," said Sam Khater, Freddie Mac's chief economist . said in a press release.
"In 2021, we expect rates to remain unchanged and possibly move slightly from their record lows, but solid purchase demand and inventory shortages will continue to put pressure on property markets and house price growth."
The 30-year fixed-rate mortgage averaged 2.67% in the week ending December 31, 2020, slightly above last week's average of 2.66%. A year ago, the average duration of the 30-year fixed-rate mortgage at that time was 3.72%.
The 15 year fixed rate mortgage averaged 2.17%, compared to last week when it averaged 2.19%. A year ago, the average duration of the 15-year fixed-rate mortgage was 3.16%.
The five-year Treasury-indexed hybrid variable rate mortgage averaged 2.71%, averaging 0.4 point, compared to last week when it averaged 2.79%. A year ago, the average five-year variable rate mortgage at that point averaged 3.46%.
The Zillow Rate Tracker, which measures the offers made through its website, ended the seven-day period at its lowest record ever Bond yields, said Zillow economist Matthew Speakman in his comment released Wednesday night.
“The modest downtrend was a fitting end to a year when mortgage rates fell to levels that seemed unfathomable a few years ago. But there are some notable upside risks to mortgage rates at the start of a new year, ”continued Speakman.
"Compared to the passing of the recently passed COVID-19 relief bill, which the markets had been expecting for months, the results of two runoff elections to the Senate in Georgia and the possibility of further tax breaks for investors are far less certain and could therefore be dependent on their results lead to large movements in bond yields. Until more is known on both fronts, significant movements in mortgage rates seem unlikely. "