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Mortgage Rates Down a Bit – But Can It Continue?

The average 30-year, fixed-rate mortgage dropped to 2.94% from last week’s 2.96%, but with inflation apparently rising, they’ll likely change direction soon.

MCLEAN, Va. – Mortgage rates continued their slow descent this week, with the average 30-year, fixed-rate mortgage dropping to 2.94% from last week’s 2.96% average, according to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS).

“Since the most recent peak in April, mortgage rates have declined nearly a quarter of a percent and remained under 3% for the past month,” says Sam Khater, Freddie Mac’s chief economist.

However, Khater also issued a warning about possible rate increases in the short term.

“The low mortgage rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than 12 years and may lead to higher mortgage rates in the summer,” he says.

Weekly mortgage rates, May 13, 2021

  • The 30-year fixed-rate mortgage averaged 2.94% with an average 0.7 point, down from last week when it averaged 2.96%. A year ago, the 30-year FRM averaged 3.28%.
  • The 15-year fixed-rate mortgage averaged 2.26% with an average 0.6 point, down from last week’s 2.30%. A year ago, the 15-year FRM averaged 2.72%.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.59% with an average 0.3 point, down from last week’s 2.70%. A year ago, the 5-year ARM averaged 3.18%.

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