Mortgage Rates Continue to Climb Up

Rhea-AI Summary

On March 2, 2023, Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage (FRM) increased to 6.65%, up from 6.50% the previous week. This rise contrasts sharply with the 3.76% average from a year ago. The 15-year fixed-rate mortgage also rose to 5.89% from 5.76%, compared to 3.01% a year prior. Sam Khater, Freddie Mac's Chief Economist, noted that while lower rates earlier in the year encouraged buyers, current rising rates are creating affordability challenges, particularly for repeat buyers.

Positive

• None.

Negative

• Affordability issues for potential buyers due to rising mortgage rates.
• 30-year FRM increased by 0.15% from last week, affecting market dynamics.

MCLEAN, Va., March 02, 2023 (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 6.65 percent.

“As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “Lower mortgage rates back in January brought buyers back into the market. Now that rates are moving up, affordability is hindered and making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates.”

News Facts

• 30-year fixed-rate mortgage averaged 6.65 percent as of March 2, 2023, up from last week when it averaged 6.50 percent. A year ago at this time, the 30-year FRM averaged 3.76 percent.
• 15-year fixed-rate mortgage averaged 5.89 percent, up from last week when it averaged 5.76 percent. A year ago at this time, the 15-year FRM averaged 3.01 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/3b3f9f27-a10a-452a-a758-f8c5bb16ac65

FAQ

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

As of March 2, 2023, the average rate for a 30-year fixed-rate mortgage is 6.65%.

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

The 15-year fixed-rate mortgage averaged 5.89% as of March 2, 2023, up from 3.01% a year ago.

What are the predictions for mortgage rates according to Freddie Mac's Chief Economist?

Sam Khater anticipates that rising mortgage rates are expected to continue due to sustained economic growth and inflation.