Mortgage Rates in Q1 2021: A Historical U.S. Review

Historical context: This article covers the first quarter of 2021. Its figures are U.S. survey averages from that period, not current mortgage rates or Los Angeles lender quotes.

U.S. 30-year fixed mortgage rates rose during the first quarter of 2021 after starting the year at a survey low. Freddie Mac reported a 2.65% average for the week ending January 7 and 3.17% for the week ending March 25. The difference was 0.52 percentage points. Those two weekly observations describe the change between those dates; they are not a quarterly average.

What the historical survey shows

Freddie Mac's 2021 Primary Mortgage Market Survey archive lists the following average rates for 30-year fixed mortgages:

• January 7, 2021: 2.65%.
• March 25, 2021: 3.17%, the last weekly observation within the first quarter.
• April 1, 2021: 3.18%, the first weekly observation in the second quarter.

The archive also reports fees and points alongside rates. A rate alone does not describe the full cost of borrowing. Keep the observation date, loan type, and associated costs together when comparing historical figures.

A national average is not a local loan offer

Freddie Mac’s weekly figures are national survey averages for 30-year fixed home mortgages. A borrower’s actual offer depends on the loan and lender, so these figures cannot establish a Los Angeles rate or an individual quote.

A residential mortgage survey also cannot serve as a quote for an apartment building or commercial property loan. The property, borrower, loan structure, and lender's terms need their own review.

Lower rates do not settle the affordability question

A borrowing rate is one input. The purchase price, down payment, loan amount, term, taxes, insurance, and other costs still affect the amount a buyer must pay. A historical low rate, by itself, does not establish that a specific property was affordable.

For a home loan comparison today, the Consumer Financial Protection Bureau's Loan Estimate explainer shows where to check the loan terms, projected monthly payments, closing costs, and cash needed to close. Use a dated offer for the property and loan being considered.

Use the archive for context, then obtain current terms

For a current national benchmark, consult Freddie Mac's current mortgage survey, then compare the actual lender terms relevant to your situation.

Owners reviewing commercial property financing can also read how interest rates affect commercial real estate for a separate discussion of financing costs and property operations.