Mortgage Rates Increase

Rhea-AI Summary

Freddie Mac reports an increase in mortgage rates due to positive economic data and a U.S. government credit rating downgrade. Despite higher rates and lower purchase demand, home prices have risen due to low inventory.

Positive

• Mortgage rates have risen, with the 30-year fixed-rate mortgage averaging 6.90 percent, up from 6.81 percent last week and 4.99 percent a year ago. This could indicate a positive trend for lenders and investors in the mortgage market.

Negative

• None.

MCLEAN, Va. , Aug. 03, 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 6.90 percent.

“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”

News Facts

• 30-year fixed-rate mortgage averaged 6.90 percent as of August 3, 2023, up from last week when it averaged 6.81 percent. A year ago at this time, the 30-year FRM averaged 4.99 percent.
• 15-year fixed-rate mortgage averaged 6.25 percent, up from last week when it averaged 6.11 percent. A year ago at this time, the 15-year FRM averaged 4.26 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/6ec02b5a-8c9e-4171-b74a-fd9c3db33e46

FAQ

What caused the increase in mortgage rates?

The combination of upbeat economic data and a U.S. government credit rating downgrade caused mortgage rates to rise.

How have home prices been affected?

Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.

What is the current average rate for a 30-year fixed-rate mortgage?

The current average rate for a 30-year fixed-rate mortgage is 6.90 percent.

What is Freddie Mac's mission?

Freddie Mac's mission is to make home possible for families across the nation by promoting liquidity, stability, affordability, and equity in the housing market throughout all economic cycles.

How can I contact Freddie Mac for more information?

You can contact Freddie Mac through their website or by phone at (703)714-0644.