Mortgage rates decline, housing market on upward trajectory

30-year fixed-rated mortgage averages 2.88% for the week ending Oct. 1, 2020, down from 2.90% in the prior week and vs. 3.65% at this time a year ago, according to the Freddie Mac Primary Mortgage Market Survey.

"As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time," said Freddie Chief Economist Sam Khater. “We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate."

15-year FRM averages 2.36% vs. 2.40% in the prior week and 3.14% a year ago.

5-year Treasury-indexed hybrid adjustable rate mortgage averages 2.90% unchanged from last week and 3.38% a year ago.

Sam Khater added: "However, several factors could disrupt this activity including high home prices, low inventory and lender capacity.”