Mortgage Rates Inch Up

(RTTNews) - Mortgage rates, or interest rates on home loans, increased slightly from last week, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 2.87 percent for the week ending August 26, 2021, up from 2.86 percent last week. A year ago at this time, the average rate was 2.91 percent.

The 15-year FRM this week averaged 2.17 percent, up slightly from 2.16 percent last week. A year ago at this time, the 15-year FRM averaged 2.46 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.42 percent, down slightly from 2.43 percent last week. It was 2.91 percent a year ago.

"The tug-of-war between the economic recovery and rising COVID-19 cases has left mortgage rates moving sideways over the last few weeks," said Sam Khater, Freddie Mac's Chief Economist. "Overall, rates continue to be low, with a window of opportunity for those who did not refinance under three percent. From a homebuyer perspective, purchase application demand is improving, but the major obstacle to higher home sales remains very low inventory for consumers to purchase."