Mortgage Rates Rise

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 3.14% for the week ending October 28, 2021, up from 3.09% last week and 2.81% a year ago. The 15-year fixed-rate mortgage averaged 2.37%, an increase from 2.33% last week, while the 5-year ARM rose to 2.56% from 2.54%. Chief Economist Sam Khater noted rising mortgage rates due to optimistic consumer sentiment and inflation concerns, but purchase demand remains strong, indicating ongoing latent demand among consumers.

Positive

• 30-year fixed-rate mortgage increased to 3.14%, indicating potential growth in mortgage activity.
• Firm purchase demand suggests a resilient housing market despite rising rates.

Negative

• Rising mortgage rates may deter potential homebuyers, impacting future loan originations.

MCLEAN, Va., Oct. 28, 2021 (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 3.14 percent.

“The yield on the 10-year Treasury note has been trending up due to the decline in new COVID cases, increasing consumer optimism, as well as broadening inflation and persistent shortages,” said Sam Khater, Freddie Mac’s Chief Economist. “Mortgage rates are also rising, but purchase demand remains firm, showing that latent purchase demand exists among consumers.”

News Facts

• 30-year fixed-rate mortgage averaged 3.14 percent with an average 0.7 point for the week ending October 28, 2021, up from last week when it averaged 3.09 percent. A year ago at this time, the 30-year FRM averaged 2.81 percent.
• 15-year fixed-rate mortgage averaged 2.37 percent with an average 0.7 point, up from last week when it averaged 2.33 percent. A year ago at this time, the 15-year FRM averaged 2.32 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.56 percent with an average 0.3 point, up from last week when it averaged 2.54 percent. A year ago at this time, the 5-year ARM averaged 2.88 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.

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/b39255f9-4f9c-4971-a71c-5d9bb65f9df6

FAQ

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

As of October 28, 2021, the average rate for a 30-year fixed-rate mortgage is 3.14%.

How does the current 15-year mortgage rate compare to last week?

The 15-year fixed-rate mortgage averaged 2.37% this week, up from 2.33% last week.

What factors are contributing to the rise in mortgage rates?

The rise in mortgage rates is influenced by increasing consumer optimism, inflation, and the yield on the 10-year Treasury note.

What impact do rising mortgage rates have on home buying?

Rising mortgage rates may deter potential homebuyers, which could affect future demand for mortgages.

What price points are used in the Freddie Mac mortgage survey?

The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put 20% down.