Mortgage Rates Stable Heading Into Continued Pandemic Uncertainty

The 30-year fixed-rate mortgage (FRM) averaged 3.11% for the week ending Dec. 2, according to Freddie Mac's Primary Mortgage Market Survey (PMMS).

Mortgage details:

- The 30-year fixed-rate mortgage averaged 3.11% with an average 0.6 point for the week ending Dec. 2, 2021, up slightly from last week when it averaged 3.10%. Last year, the 30-year FRM averaged 2.71%.

- The 15-year fixed-rate mortgage averaged 2.39%with an average 0.6 point, down from last week when it averaged 2.42%. Last year, the 15-year FRM averaged 2.26%.

- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.49% with an average 0.3 point, up from last week when it averaged 2.47%. Last year, the 5-year ARM averaged 2.86%.

The takeaway:

"Mortgage rates continue to remain stable notwithstanding volatility in the financial markets," said Sam Khater, Freddie Mac's chief economist, in a statement. "The consistency of rates in the face of changes in the economy is primarily due to the evolution of the pandemic, which lingers and continues to pose uncertainty. This low mortgage rate environment offers favorable conditions for refinancing."

"Investors balanced worries about the new omicron COVID variant with cues from the ADP private sector employment numbers which outpaced market expectations. Markets also took note of Federal Reserve Chairman Powell's testimony in Congress which pointed to a potential faster pullback in asset purchases—including mortgage-backed securities—as a sign of continued economic improvement," said realtor.com® Manager of Economic Research George Ratiu in a statement. "Markets will be focused on tomorrow's [at press time] payroll employment data for more information about the economic direction."

"Real estate markets continue to benefit from favorable dynamics as we approach the end of the year. Demand remains robust, keeping inventory moving swiftly and prices on an upswing, even as the highly competitive environment from early 2021 is firmly in the rearview mirror. The slight cooling in housing markets and mortgage rates, still low by historical standards, have many buyers determined to find a home even in the cooler months of the year," added Ratiu.