Mortgage Rates Continue to Increase
Freddie Mac (OTCQB: FMCC) reported in its latest Primary Mortgage Market Survey that the average 30-year fixed-rate mortgage reached 5.30% as of May 12, 2022, up from 5.27% the previous week and significantly higher than 2.94% a year ago. The 15-year fixed-rate mortgage averaged 4.48%, a slight decrease from 4.52% last week, while the 5-year ARM rose to 3.98%. Chief Economist Sam Khater noted that rising rates are increasing monthly payments for homebuyers by approximately one-third compared to last year, which may dampen purchase demand moving forward.
- Increased mortgage rates indicate a robust housing market.
- Continued interest from first-time homebuyers supports market resilience.
- 30-year fixed-rate mortgage increased by 1.36 percentage points from a year ago, raising affordability concerns.
- Expected decline in purchase demand due to rising rates and inflation.
MCLEAN, Va., May 12, 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 5.30 percent.
“Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors are contributing to this dynamic, including the large wave of first-time homebuyers looking to realize the dream of homeownership. In the months ahead, we expect monetary policy and inflation to discourage many consumers, weakening purchase demand and decelerating home price growth.”
News Facts
- 30-year fixed-rate mortgage averaged 5.30 percent with an average 0.9 point as of May 12, 2022, up from last week when it averaged 5.27 percent. A year ago at this time, the 30-year FRM averaged 2.94 percent.
- 15-year fixed-rate mortgage averaged 4.48 percent with an average 0.9 point, down from last week when it averaged 4.52 percent. A year ago at this time, the 15-year FRM averaged 2.26 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.98 percent with an average 0.3 point, up from last week when it averaged 3.96 percent. A year ago at this time, the 5-year ARM averaged 2.59 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/6af823c9-4c6d-4afd-a3b9-4bc361c4ef35
FAQ
What is the current average rate for a 30-year fixed-rate mortgage as of May 12, 2022?
How much has the 30-year fixed-rate mortgage increased compared to last year?
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What was the average rate for a 15-year fixed-rate mortgage on May 12, 2022?
How does the current 5-year ARM rate compare to last year?
