Today's Mortgage Rates

Fixed mortgage rates firmed up a little this week, landing in the middle of where they've wandered over the last four weeks.

As reported by Freddie Mac, the average offered rate for a conforming 30-year FRM increased three basis points (0.03%), edging up to 2.90 percent. Fifteen-year FRMs kicked a little higher, posting an increase of five basis points (0.05%) to tick up to 2.40 percent. Hybrid 5/1 ARMs continue to be erratic, with the initial fixed interest rate for the first five years decreasing by six one hundredths of a percentage point and returning to a recent low point of 2.90 percent for the week. The ARM market is starting to change, as LIBOR-based ARMs are being phased out and lenders probably aren't yet comfortable with SOFR-based product, which will be the new standard in the market by next year.

With mortgage rates low, home sales have been well supported as the summer came to a close. Existing home sales increased by 2.4% in August to a 6 million annualized rate of sale, but tight inventories of homes for sale continue to pressure home prices upward, with the median price of a home sold this year 11.4% above last August. Sales of new homes increased by 4.8% in August, rising to a 1.011 million annual rate, the highest annual figure since September 2006. Some of these gains are a result of shifted demand from the spring shutdown, but some are also due to COVID-19 effects as work-from-home and getting out of congested urban areas have added new dimensions to the housing market this year.

Mortgage rates remain on a level plane at the moment.

We track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers in each week's MarketTrends newsletter. Read the most recent edition on HSH.com or subscribe for email delivery.