Mortgage Rates Remain Unchanged From Last Week

The 30-year fixed-rate mortgage averaged 3.55% this week, remaining unchanged from the previous week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), released this week.

U.S. weekly averages

What it means

“The economy lost some momentum in January, leaving mortgage rates unchanged from last week and relatively flat for the third consecutive week. This stagnation reflects the economic impact of the Omicron variant of COVID-19, which we believe will subside in the coming months,” said Sam Khater, Freddie Mac’s Chief Economist. “As economic recovery continues going into the spring and summer, mortgage rates are expected to resume their upward trajectory. In the meantime, recent data suggests that homebuyer demand continues to be elevated as supply remains low, driving higher home prices.”

“So far, housing data has indicated that rising mortgage rates are creating a sense of urgency, rather than deterring potential homebuyers, and prices continue to rise while the few homes available for sale are snapped up quickly, said Danielle Hale, chief economist. “These conditions can be especially challenging for first-time homebuyers already grappling with rising rents that make it difficult to save for a down payment. Against this backdrop, the homeownership rate eked out a small gain at the end of 2021, closing the year up at 65.5%. Our expectation is for homeownership to rise modestly as demographics and higher rents propel more first-time home sales despite higher housing costs in 2022.”

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