Mortgage rates remain under 3% for second week

The big news in mortgage rates last week was that the upward climb of the last couple of months halted and rates dipped slightly to just under 3% on a 30 year fixed-rate mortgage. This week, that trend continued as 30 year fixed-rate mortgages averaged 2.98% with 0.7 points (what are points?). 15 year fixed-rate products averaged 2.31% with 0.7 points.

The consensus is that these rate improvements are being driven by concerns about rising COVID19 cases over the last few weeks, despite vaccine rollout. Vaccine eligibility has opened in all states to all adults who are 16 and older. About 30% of the US population is fully vaccinated and 43% has received at least one shot.

Lower rates will likely get more buyers out touring and fighting for the already constrained inventory. With prices at an all time high, even the smallest drop in rates will account for big savings over the life of their mortgage.