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Mortgage Rates Remain at Record Lows This Week

The 30-year fixed-rate mortgage rate averaged 2.71% this week, holding at the all-time low first set last week, Freddie Mac reported.

The ultra-low mortgage rates are making homebuying more attractive and boosting sales activity to the highest level since 2006, economists said at the National Association of REALTORS®’ virtual Real Estate Forecast Summit on Thursday. While home prices are rising annually by double-digit percentages, mortgage payments remain more affordable due to low mortgage rates.

Home prices have jumped 16% compared to a year earlier, but monthly mortgage payments with 30-year fixed-rate mortgages have increased by only $10. Also, the average American is earning about $380 more per month compared to a year earlier, notes NAR researcher Nadia Evangelou at the association’s Economists’ Outlook blog.

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 10:

  • 30-year fixed-rate mortgages: averaged 2.71%, with an average 0.7 point, unchanged from last week. Last year at this time, 30-year rates averaged 3.73%.
  • 15-year fixed-rate mortgages: averaged 2.26%, with an average 0.6 point, also unchanged from last week. A year ago, 15-year rates averaged 3.19%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.79%, with an average 0.3 point, falling from last week’s 2.86% average. A year ago, 5-year ARMs averaged 3.36%.

Freddie Mac reports average points along with commitment rates to better reflect the total upfront cost of obtaining a mortgage.

Freddie Mac and “Instant Reaction: Mortgage Rates, December 10, 2020,” National Association of REALTOR
Our local Haywood County home sales have really taken off this Fall.  In November 2019, 79 homes were sold here.  In November 2020, 134 homes were sold.  That represents a 70% increase in sales year over year.  Home prices have also increased in the last year.  The average home sales price in November 2019 was $303,603, in November 2020 it was $329,959.  (an 8.7% increase)  Our inventory of homes for sale has fallen also, which has caused a seller’s market.  If you have been thinking about selling your home, please let us know.  Now is a great time!