Despite reports of rising mortgage rates throughout the start of the new year, economists continue to predict high affordability throughout 2013. The most recent Primary Mortgage Market Survey from Freddie Mac revealed averages for fixed-rate mortgages were dormant the week ending February 14, while rates for adjustable-rate mortgages increased.
According to the survey, the average rate for 30-year FRMs remained at 3.53 percent, and despite reaching above 3.5 percent for the first time since the middle of 2012, rates are still considerably affordable. When compared to the 3.87 percent average rate from the same time last year, buying or refinancing to a 30-year FRM may benefit many.
In addition, the average rate for 15-year FRMs also stayed the same, at 2.77 percent. This is notably lower than the 3.16 percent 15-year average recorded this time a year ago.
Unlike FRM averages that were dormant the second week of February, real estate records revealed the average rate for 5-year ARMs increased slightly to 2.64 percent from 2.63 percent. Averages have been approaching rates from last year, and the latest average is not too far off the 2.82 percent average from this time a year ago.