Mortgage Rates Hold at 2.73% Average for Another Week

The 30-year fixed-rate mortgage continues to hover near all-time lows, attracting home shoppers and refinancers.

The 30-year fixed-rate mortgage continued to hover near its all-time low, offering low borrowing costs to home shoppers and refinancers. The 30-year fixed-rate mortgage averaged 2.73% again this week; it’s all-time low was 2.65%, which was set in early January, Freddie Mac reports.

“Mortgage rates remained flat this week and near record lows, signifying an economy that continues to struggle,” says Sam Khater, Freddie Mac’s chief economist. “This rate environment is advantageous for those who are looking to refinance in order to strengthen their financial position. While many have already refinanced, the evidence suggests that upper-income homeowners have taken advantage of the opportunity more so than lower-income homeowners who could stand to benefit the most by lowering their monthly mortgage payment.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 4:

  • 30-year fixed-rate mortgages: averaged 2.73%, with an average 0.7 point, unchanged from last week. Last year at this time, 30-year rates averaged 3.45%.
  • 15-year fixed-rate mortgage: averaged 2.21%, with an average 0.6 point, rising slightly from last week’s 2.20% average. A year ago, 15-year rates averaged 2.97%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.78%, with an average 0.3 point, dropping from last week’s 2.80% average. A year ago, 5-year ARMs averaged 3.32%.

Freddie Mac reports average commitment rates with average points to reflect the total upfront costs of obtaining a mortgage.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, February 4, 2021,” National Association of REALTORS® Economists’ Outlook blog (Feb. 4, 2021)