Mortgage Rates Continue to Decrease

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the average 30-year fixed-rate mortgage (FRM) fell to 2.88% for the week ending July 15, 2021, down from 2.90% the previous week and 2.98% a year ago. This decline marks the third consecutive week of falling mortgage rates, providing modest relief to homebuyers amid strong home appreciation and limited inventory. The 15-year FRM averaged 2.22% and the 5-year adjustable-rate mortgage (ARM) averaged 2.47% during the week. Freddie Mac aims to enhance housing accessibility through mortgage capital provision.

MCLEAN, Va., July 15, 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 2.88 percent.

“The summer swoon in mortgage rates continues as the 30-year fixed-rate mortgage fell for the third consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Since their peak at 3.18% in April, mortgage rates have declined by thirty basis points. While this decline is not large, it provides modest relief to borrowers who are purchasing in a market with strong home appreciation and scant inventory.”

News Facts

• 30-year fixed-rate mortgage averaged 2.88 percent with an average 0.7 point for the week ending July 15, 2021, down from last week when it averaged 2.90 percent. A year ago at this time, the 30-year FRM averaged 2.98 percent.
• 15-year fixed-rate mortgage averaged 2.22 percent with an average 0.6 point, down from last week when it averaged 2.20 percent. A year ago at this time, the 15-year FRM averaged 2.48 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.47 percent with an average 0.3 point, down from last week when it averaged 2.52 percent. A year ago at this time, the 5-year ARM averaged 3.06 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/87517f69-8064-4a19-8bb7-70a16a9c643d

FAQ

What is the current average rate for a 30-year fixed mortgage by FMCC?

As of July 15, 2021, the average rate for a 30-year fixed mortgage by Freddie Mac is 2.88%.

How much did the 30-year mortgage rate decrease this week?

The 30-year mortgage rate decreased by 0.02% from 2.90% to 2.88% for the week ending July 15, 2021.

What were the average rates for 15-year and 5-year ARMs reported by FMCC?

The average rate for a 15-year fixed mortgage was 2.22%, and the 5-year ARM averaged 2.47% as of July 15, 2021.

What impact do declining mortgage rates have on homebuyers?

Declining mortgage rates provide modest relief to homebuyers, especially in a market with strong home appreciation and low inventory.

What historical mortgage rates are compared in the FMCC report?

The report compares current rates to last week's average of 2.90% and last year's average of 2.98% for the 30-year FRM.