Thinking about taking the next step and buying your new construction home while mortgage rates are still low? Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.71 percent, the lowest rate in the survey’s history which dates back to 1971.
30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week ending December 3, 2020, down from last week when it averaged 2.72 percent. A year ago at this time, the 30-year FRM averaged 3.68 percent.
15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week when it averaged 2.28 percent. A year ago at this time, the 15-year FRM averaged 3.14 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent with an average 0.3 point, down from last week when it averaged 3.16 percent. A year ago at this time, the 5-year ARM averaged 3.39 percent.
What does this mean when it comes to buying power and savings? The chart below (courtesy of HAR.com) illustrates the potential savings when you decrease your mortgage rate by just one percentage point. The bigger the spread, the greater the savings.
Estimated Monthly Payment On a 30-Year Fixed-Rate Mortgage