Mortgage Rates Continue to Decrease

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced results from its Primary Mortgage Market Survey (PMMS) for the week ending June 17, 2021. The 30-year fixed-rate mortgage averaged 2.93%, down from 2.96% the previous week and 3.13% a year ago. The 15-year fixed-rate mortgage slightly rose to 2.24%, while the 5-year adjustable-rate mortgage dropped to 2.52%. Chief Economist Sam Khater noted that while mortgage rates are low, weakened demand is primarily due to high home prices, suggesting ongoing affordability challenges.

Positive

• 30-year fixed-rate mortgage decreased to 2.93%, benefiting potential homebuyers.
• 5-year Treasury-indexed hybrid ARM dropped to 2.52%, indicating lower borrowing costs.

Negative

• Weakened purchase demand attributed to affordability constraints from high home prices.
• Inventory tightness may sustain high prices despite decreased demand.

MCLEAN, Va., June 17, 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 2.93 percent.

“Mortgage rates continue to drift down as markets concur with the view that inflation increases are temporary,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.”

News Facts

• 30-year fixed-rate mortgage averaged 2.93 percent with an average 0.7 point for the week ending June 17, 2021, down from last week when it averaged 2.96 percent. A year ago at this time, the 30-year FRM averaged 3.13 percent.
• 15-year fixed-rate mortgage averaged 2.24 percent with an average 0.6 point, up slightly from last week when it averaged 2.23 percent. A year ago at this time, the 15-year FRM averaged 2.58 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.3 point, down from last week when it averaged 2.55 percent. A year ago at this time, the 5-year ARM averaged 3.09 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:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76d7b78b-1221-40a2-bf6e-9936c19f7900

FAQ

What is the current average for the 30-year fixed-rate mortgage according to Freddie Mac?

As of June 17, 2021, the average for the 30-year fixed-rate mortgage is 2.93%.

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

The 15-year fixed-rate mortgage averaged 2.24%, up slightly from 2.23% last week.

What was the trend in mortgage rates reported by Freddie Mac?

Mortgage rates are generally drifting down, with the current rates reflecting a decrease in the 30-year and 5-year ARMs.

What are the implications of high home prices on mortgage demand?

High home prices are leading to affordability constraints, resulting in weakened purchase demand.