Mortgage Rates Continue to Jump

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the release of its Primary Mortgage Market Survey on February 17, 2022, revealing a surge in mortgage rates. The 30-year fixed-rate mortgage averaged 3.92%, up from 3.69% last week and significantly higher than 2.81% a year ago. The 15-year fixed-rate mortgage rose to 3.15%, while the 5-year Treasury-indexed ARM averaged 2.98%. The increase is attributed to high inflation and unexpected consumer spending, creating challenges for homebuyers due to reduced affordability.

Positive

• 30-year fixed-rate mortgage increased to 3.92%, indicating a robust mortgage market.
• Freddie Mac continues to provide mortgage capital, enhancing housing accessibility.

Negative

• Rising mortgage rates may significantly hinder affordability for potential homebuyers.
• The average rates' increase is tied to high inflation, which poses a risk to consumer budgets.

MCLEAN, Va., Feb. 17, 2022 (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 3.92 percent.

“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets.”

News Facts

• 30-year fixed-rate mortgage averaged 3.92 percent with an average 0.8 point for the week ending February 17, 2022, up from last week when it averaged 3.69 percent. A year ago at this time, the 30-year FRM averaged 2.81 percent.
• 15-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point, up from last week when it averaged 2.93 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent with an average 0.3 point, up from last week when it averaged 2.80 percent. A year ago at this time, the 5-year ARM averaged 2.77 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:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a0c3f6af-aed0-4968-9817-50f7c8789f58

FAQ

What is the current rate of the 30-year fixed-rate mortgage according to FMCC?

The 30-year fixed-rate mortgage averaged 3.92% as of February 17, 2022.

How did the 15-year fixed-rate mortgage rate change recently for FMCC?

The 15-year fixed-rate mortgage increased to 3.15% from 2.93% the previous week.

Why are mortgage rates increasing according to FMCC?

Mortgage rates are increasing due to high inflation and stronger-than-expected consumer spending.

What impact do rising mortgage rates have on homebuyers according to FMCC?

The rising rates create affordability challenges for potential homebuyers.