Mortgage Rates Continue to Climb

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey on October 21, 2021, indicating that the 30-year fixed-rate mortgage averaged 3.09%, up from 3.05% the previous week and 2.80% a year ago. The 15-year fixed-rate mortgage rose to 2.33%, consistent with last year, while the 5-year Treasury-indexed hybrid ARM decreased slightly to 2.54%. Chief Economist Sam Khater noted rising mortgage rates amid a challenging economic backdrop, with high prices driven by strong demand and limited supply. This suggests a robust housing market outlook as the year progresses.

Positive

• None.

Negative

• Increasing mortgage rates may reduce affordability for potential homebuyers.
• High home prices could continue to constrain demand despite improving availability.

MCLEAN, Va., Oct. 21, 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 3.09 percent.

“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” said Sam Khater, Freddie Mac’s Chief Economist. “Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages. Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year.”

News Facts

• 30-year fixed-rate mortgage averaged 3.09 percent with an average 0.7 point for the week ending October 21, 2021, up from last week when it averaged 3.05 percent. A year ago at this time, the 30-year FRM averaged 2.80 percent.
• 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.7 point, up from last week when it averaged 2.30 percent. A year ago at this time, the 15-year FRM averaged 2.33 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.54 percent with an average 0.3 point, down slightly from last week when it averaged 2.55 percent. A year ago at this time, the 5-year ARM averaged 2.87 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/eb4c3075-14a1-4e97-a97d-728bf06ce69a

FAQ

What was the average mortgage rate for Freddie Mac on October 21, 2021?

The average 30-year fixed-rate mortgage was 3.09%.

How did the 15-year fixed-rate mortgage change compared to last week?

The 15-year fixed-rate mortgage increased to 2.33% from 2.30%.

What factors are contributing to the rise in mortgage rates?

Rising rates are attributed to economic trends and the ongoing pandemic.

What is the current rate for the 5-year Treasury-indexed hybrid ARM?

The 5-year Treasury-indexed hybrid ARM averaged 2.54%.

How might rising mortgage rates impact the housing market?

Increasing mortgage rates may reduce affordability and affect homebuyer demand.