Mortgage Rates Surge

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey® (PMMS®) on October 10, 2024, showing a significant increase in mortgage rates. The 30-year fixed-rate mortgage (FRM) averaged 6.32%, up from 6.12% last week and down from 7.57% a year ago. The 15-year FRM averaged 5.41%, up from 5.25% last week and down from 6.89% a year ago.

Sam Khater, Freddie Mac's Chief Economist, attributed the surge to a stronger-than-expected September jobs report, noting it was the largest one-week increase since April. He emphasized that the rise in rates reflects shifts in expectations rather than changes in the underlying economy, which has remained strong throughout most of the year.

Positive

• 30-year FRM rate (6.32%) is lower compared to the previous year (7.57%)
• 15-year FRM rate (5.41%) is lower compared to the previous year (6.89%)
• Strong underlying economy supporting the housing market recovery

Negative

• 30-year FRM rate increased from 6.12% to 6.32% in one week
• 15-year FRM rate increased from 5.25% to 5.41% in one week
• Largest one-week increase in mortgage rates since April
• Higher rates may challenge housing affordability

MCLEAN, Va., Oct. 10, 2024 (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 6.32 percent.

“Following the release of a stronger-than-expected September jobs report, the 30-year fixed rate mortgage saw the largest one-week increase since April,” said Sam Khater, Freddie Mac’s Chief Economist. “However, we should remember that the rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year. Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market.”

News Facts

• The 30-year FRM averaged 6.32 percent as of October 10, 2024, up from last week when it averaged 6.12 percent. A year ago at this time, the 30-year FRM averaged 7.57 percent.
• The 15-year FRM averaged 5.41 percent, up from last week when it averaged 5.25 percent. A year ago at this time, the 15-year FRM averaged 6.89 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 | X | 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/c2e29048-2a82-4e04-8f4f-16e2d9b678eb

FAQ

What was the 30-year fixed-rate mortgage average for Freddie Mac (FMCC) on October 10, 2024?

The 30-year fixed-rate mortgage (FRM) averaged 6.32% as of October 10, 2024, according to Freddie Mac's Primary Mortgage Market Survey®.

How much did the 30-year FRM rate increase for Freddie Mac (FMCC) compared to the previous week?

The 30-year FRM rate increased by 0.20 percentage points, from 6.12% in the previous week to 6.32% on October 10, 2024.

What was the 15-year fixed-rate mortgage average for Freddie Mac (FMCC) on October 10, 2024?

The 15-year fixed-rate mortgage (FRM) averaged 5.41% as of October 10, 2024, according to Freddie Mac's Primary Mortgage Market Survey®.

What factor contributed to the surge in mortgage rates for Freddie Mac (FMCC) in October 2024?

According to Freddie Mac's Chief Economist, the surge in mortgage rates was attributed to a stronger-than-expected September jobs report.