Mortgage Rates Continue their Downward Trajectory

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a decrease in the average rates for 30-year fixed-rate mortgages, which fell to 6.31% from 6.33% last week. This is significantly higher than 3.12% a year ago. The 15-year fixed-rate mortgage also declined to 5.54% from 5.67% last week, compared to 2.34% a year prior. The Chief Economist, Sam Khater, noted that while the decline in rates has stabilized purchase demand, affordability issues continue to hinder market strength. The PMMS focuses on conventional loans for borrowers with excellent credit.

Positive

• 30-year fixed-rate mortgage rates decreased to 6.31%, improving affordability.
• Stabilization in purchase demand due to recent declines in mortgage rates.

Negative

• Demand for housing remains weak due to ongoing affordability challenges.
• Current mortgage rates are significantly higher compared to last year.

MCLEAN, Va., Dec. 15, 2022 (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 6.31 percent.

“Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad news is that demand remains very weak in the face of affordability hurdles that are still quite high.”

News Facts

• 30-year fixed-rate mortgage averaged 6.31 percent as of December 15, 2022, down from last week when it averaged 6.33 percent. A year ago at this time, the 30-year FRM averaged 3.12 percent.
• 15-year fixed-rate mortgage averaged 5.54 percent, down from last week when it averaged 5.67 percent. A year ago at this time, the 15-year FRM averaged 2.34 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 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/3246433a-8cb3-4e45-b396-e1b638a484e6

FAQ

What is the current average rate for 30-year fixed-rate mortgages as of December 2022?

As of December 15, 2022, the average rate for 30-year fixed-rate mortgages is 6.31%.

How does the current 30-year mortgage rate compare to last year?

Last year, the 30-year fixed-rate mortgage averaged 3.12%, showing a significant increase this year.

What is the current average rate for 15-year fixed-rate mortgages?

The current average for 15-year fixed-rate mortgages is 5.54% as of December 15, 2022.

What factors are affecting mortgage demand according to the latest Freddie Mac report?

Weak mortgage demand is primarily due to high affordability challenges despite declining rates.