Mortgage Rates Continue to Decrease

Rhea-AI Summary

Freddie Mac has released its Primary Mortgage Market Survey® (PMMS®) on May 16, 2024, showing a slight decrease in mortgage rates for the second consecutive week. The 30-year fixed-rate mortgage (FRM) averaged 7.02%, down from 7.09% the previous week. Comparatively, it was 6.39% a year ago. The 15-year FRM averaged 6.28%, down from 6.38% last week, and 5.75% a year ago. This decrease is attributed to a slight easing in inflation and a dip in the 10-year Treasury yield. These lower rates may offer some financial relief to prospective homebuyers.

Positive

• 30-year FRM decreased to 7.02% from 7.09% last week.
• 15-year FRM decreased to 6.28% from 6.38% last week.
• Decrease in mortgage rates for the second consecutive week.
• Lower mortgage rates may benefit prospective homebuyers.

Negative

• 30-year FRM is still significantly higher compared to 6.39% a year ago.
• 15-year FRM is higher than 5.75% a year ago, despite the recent decrease.

MCLEAN, Va., May 16, 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 7.02 percent.

“Mortgage rates decreased for the second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.”

News Facts

• The 30-year FRM averaged 7.02 percent as of May 16, 2024, down from last week when it averaged 7.09 percent. A year ago at this time, the 30-year FRM averaged 6.39 percent.
• The 15-year FRM averaged 6.28 percent, down from last week when it averaged 6.38 percent. A year ago at this time, the 15-year FRM averaged 5.75 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/ce4e91cd-0aed-4587-bfaa-ab959a8a82ca

FAQ

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

The current average rate for a 30-year fixed-rate mortgage (FRM) is 7.02% as of May 16, 2024.

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

The 15-year fixed-rate mortgage (FRM) decreased to 6.28% from 6.38% last week.

What was the 30-year fixed-rate mortgage (FRM) rate a year ago?

The 30-year fixed-rate mortgage (FRM) rate was 6.39% a year ago.

Why did the mortgage rates decrease according to Freddie Mac?

Mortgage rates decreased due to a slight easing in inflation and a dip in the 10-year Treasury yield.

How might the decrease in mortgage rates impact prospective homebuyers?

The decrease in mortgage rates may provide more financial flexibility for prospective homebuyers.