Omicron Variant Holds Mortgage Rates for Third Consecutive Week

The COVID-19 Omicron variant held mortgage rates steady for the third consecutive week as economic growth lost steam in January, according to the latest data from Freddie Mac. The 30-year fixed-rate mortgage remained unchanged from last week, resting at a 3.55% annual percentage rate (APR) for the week ending Feb 3. That’s up from this same time the previous year when it hit 2.73%.

Freddie Mac Chief Economist Sam Khater said that the economy lost some momentum in January, leaving mortgage rates unchanged from last week and relatively flat for the third consecutive week. This stagnation reflects the economic impact of the Omicron variant of COVID-19, which we believe will subside in the coming months. If you want to take advantage of mortgage interest rates. At the same time, they remain low, consider refinancing your home loan to lower your monthly payments.

Another type of mortgage saw a slight decrease this week. The 15-year mortgage rate dropped to 2.77%, down from 2.8% last week and up from 2.21% last year. Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased slightly to 2.71%, up from 2.7% last week but down from 2.78% last year.

As the economic recovery continues going into the spring and summer, mortgage rates are expected to resume their upward trajectory. In the meantime, recent data suggests that homebuyer demand continues to be elevated as supply remains low, driving higher home prices.