Mortgage Rates Continue to Inch Up

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has reported that the average rate for a 30-year fixed-rate mortgage has risen to 5.54% as of July 21, 2022, up from 5.51% the previous week, and significantly higher than 2.78% a year ago. The 15-year FRM also increased to 4.75%, while the 5-year Treasury-indexed hybrid ARM decreased to 4.31%. Chief Economist Sam Khater noted that rising rates, inflation, and recession concerns are softening demand in the housing market, expecting a noticeable moderation in house price appreciation.

Positive

• 30-year fixed-rate mortgage increased to 5.54%, indicating a rise in mortgage costs.
• 15-year fixed-rate mortgage increased to 4.75%, signaling a similar trend.

Negative

• Rising mortgage rates are causing concerns among consumers, leading to softening demand.
• Expectation of moderation in house price appreciation due to economic factors.

MCLEAN, Va., July 21, 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 5.54 percent.

“The housing market remains sluggish as mortgage rates inch up for a second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.”

News Facts

• 30-year fixed-rate mortgage averaged 5.54 percent with an average 0.8 point as of July 21, 2022, up from last week when it averaged 5.51 percent. A year ago at this time, the 30-year FRM averaged 2.78 percent.
• 15-year fixed-rate mortgage averaged 4.75 percent with an average 0.8 point, up from last week when it averaged 4.67 percent. A year ago at this time, the 15-year FRM averaged 2.12 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.31 percent with an average 0.3 point, down from last week when it averaged 4.35 percent. A year ago at this time, the 5-year ARM averaged 2.49 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/8119efbe-13fb-43f1-b634-09a0182f4189

 

FAQ

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

As of July 21, 2022, the average rate for the 30-year fixed-rate mortgage is 5.54%.

How much has the 15-year fixed-rate mortgage increased recently?

The 15-year fixed-rate mortgage has increased to 4.75% as of July 21, 2022.

What are the implications of rising mortgage rates on housing demand?

Rising mortgage rates are causing consumer concerns, which is softening demand in the housing market.

What does Freddie Mac expect regarding house price appreciation?

Freddie Mac expects house price appreciation to moderate noticeably due to rising rates and economic concerns.