Mortgage Rates Fall

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates in its latest Primary Mortgage Market Survey, with the 30-year fixed-rate mortgage averaging 3.76%, down from 3.89% last week. The 15-year fixed-rate mortgage averaged 3.01%, and the 5-year adjustable-rate mortgage averaged 2.91%. Economists attribute this decline to geopolitical tensions, particularly the war in Ukraine, which has created market uncertainty and driven investors towards safer assets like bonds. Short-term rates are expected to stay low, but an increase is anticipated in the coming months.

Positive

• 30-year fixed-rate mortgage averaged 3.76%, down from 3.89% a week earlier.
• 15-year fixed-rate mortgage averaged 3.01%, down from 3.14% last week.
• 5-year ARM averaged 2.91%, down from 2.98% last week.

Negative

• Geopolitical tensions and inflationary pressures create market uncertainty.

MCLEAN, Va., March 03, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.76 percent.

“Geopolitical tensions caused U.S. Treasury yields to recede this week as investors moved to the safety of bonds, leading to a drop in mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently, rates are expected to stay low in the short-term but will likely increase in the coming months.”

News Facts

• 30-year fixed-rate mortgage averaged 3.76 percent with an average 0.8 point for the week ending March 3, 2022, down from last week when it averaged 3.89 percent. A year ago at this time, the 30-year FRM averaged 3.02 percent.
• 15-year fixed-rate mortgage averaged 3.01 percent with an average 0.8 point, down from last week when it averaged 3.14 percent. A year ago at this time, the 15-year FRM averaged 2.34 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent with an average 0.3 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 5-year ARM averaged 2.73 percent.
  

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6e8777e4-e5a2-440e-a6fd-2c946a3a4072

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

FAQ

What is the current average rate for the 30-year fixed-rate mortgage reported by FMCC?

The current average rate for the 30-year fixed-rate mortgage is 3.76%.

How much did the 15-year fixed-rate mortgage average according to the latest FMCC survey?

The 15-year fixed-rate mortgage averaged 3.01%.

What factors contributed to the drop in mortgage rates announced by FMCC?

The drop in mortgage rates was influenced by geopolitical tensions and a shift of investors towards safer bonds.

What is the expected trend for mortgage rates in the coming months according to FMCC?

Mortgage rates are expected to remain low in the short term but are likely to increase in the coming months.