Rates Start Low Then Rise

January 12, 2021
Rates Start Low
Rates eased slightly to hit another record low last week—the first of the year.


However, this data did not reflect an increase which took place later in the week.  For the week ending January 7, Freddie Mac announced that 30-year fixed rates fell two ticks to 2.65% from 2.67% the week before. The average for 15-year loans also decreased to 2.16% and the average for five-year ARMs rose to 2.75%. A year ago, 30-year fixed rates averaged 3.44%, approximately 1.00% higher than today. "A new year, a new record low mortgage rate. Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season," said Sam Khater, Chief Economist, Freddie Mac.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.


Daily Value

Monthly Value


January 7


6-month Treasury Security



1-year Treasury Security



3-year Treasury Security



5-year Treasury Security



10-year Treasury Security



12-month LIBOR


0.342% (Dec)

12-month MTA


0.379% (Dec)

11th District Cost of Funds


0.466% (Nov)

Prime Rate


3.25% (March)