After Weeks of Decline, Mortgage Rates Increase

Rhea-AI Summary

On April 20, 2023, Freddie Mac (FMCC) reported that the 30-year fixed-rate mortgage (FRM) averaged 6.39%, an increase from 6.27% the previous week, and significantly higher than 5.11% a year ago. The 15-year fixed-rate mortgage also rose to 5.76% from 5.54% last week, compared to 4.38% one year prior. According to Chief Economist Sam Khater, rising mortgage rates are driven by shifting market expectations, keeping affordable housing out of reach for many potential buyers. He emphasized that without rates falling into the mid-five percent range, recovery in demand would remain modest.

Positive

• 30-year fixed-rate mortgage increased to 6.39%, signaling potential homebuyer market response.
• 15-year fixed-rate mortgage up to 5.76%, reflecting changing trends in mortgage financing.

Negative

• Continued high rates above 6% hinder affordable housing access.
• Homebuyer demand expected to recover only modestly without significant rate drops.

MCLEAN, Va., April 20, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.39 percent.

“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s Chief Economist. “Home prices have stabilized somewhat, but with supply tight and rates stuck above six percent, affordable housing continues to be a serious issue for many potential homebuyers. Unless rates drop into the mid five percent range, demand will only modestly recover.”

News Facts

• 30-year fixed-rate mortgage averaged 6.39 percent as of April 20, 2023, up from last week when it averaged 6.27 percent. A year ago at this time, the 30-year FRM averaged 5.11 percent.
• 15-year fixed-rate mortgage averaged 5.76 percent, up from last week when it averaged 5.54 percent. A year ago at this time, the 15-year FRM averaged 4.38 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cd7eca1f-4c79-447d-a4cd-3eae3f46da7c

FAQ

What is the latest 30-year fixed-rate mortgage average by Freddie Mac?

The latest average for the 30-year fixed-rate mortgage is 6.39% as of April 20, 2023.

How did the 15-year fixed-rate mortgage average change?

The 15-year fixed-rate mortgage averaged 5.76% as of April 20, 2023, up from 5.54% the prior week.

What factors are affecting mortgage rates according to Freddie Mac?

Freddie Mac attributes the rise in mortgage rates to shifting market expectations and tight housing supply.

What does Freddie Mac predict for homebuyer demand?

Freddie Mac predicts that homebuyer demand will only modestly recover unless mortgage rates drop into the mid-five percent range.