Mortgage Rates Continue to Move Up

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the average rate for a 30-year fixed-rate mortgage at 5.66% as of September 1, 2022, up from 5.55% the previous week. This marks a significant increase compared to 2.87% a year ago. The 15-year fixed-rate mortgage averaged 4.98%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) reached 4.51%. Chief Economist Sam Khater indicated that rising mortgage rates are challenging the housing market, causing price adjustments due to decreased buyer demand.

Positive

• None.

Negative

• Rising mortgage rates could lead to decreased purchase demand.
• 30-year fixed-rate mortgage nearly doubled compared to a year ago.
• Potential for continued price growth deceleration in housing market.

MCLEAN, Va., Sept. 01, 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 5.66 percent.

“The market’s renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration.”

News Facts

• 30-year fixed-rate mortgage averaged 5.66 percent with an average 0.8 point as of September 1, 2022, up from last week when it averaged 5.55 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
• 15-year fixed-rate mortgage averaged 4.98 percent with an average 0.8 point, up from last week when it averaged 4.85 percent. A year ago at this time, the 15-year FRM averaged 2.18 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.51 percent with an average 0.4 point, up from last week when it averaged 4.36 percent. A year ago at this time, the 5-year ARM averaged 2.43 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/8622f58b-ab45-45da-882c-4cdbe4a341c3

FAQ

What is the current average rate for a 30-year fixed-rate mortgage from Freddie Mac (FMCC)?

As of September 1, 2022, the average rate for a 30-year fixed-rate mortgage is 5.66%.

How much did the mortgage rates increase from the previous week?

The 30-year fixed-rate mortgage increased from 5.55% to 5.66% in the last week.

What do the current mortgage rates indicate about the housing market?

The increase in mortgage rates suggests a decrease in purchase demand, leading to potential price growth deceleration.

What were the rates for the 15-year fixed-rate mortgage and 5-year ARM reported by Freddie Mac?

The 15-year fixed-rate mortgage averaged 4.98%, and the 5-year ARM averaged 4.51%.

How do current mortgage rates compare to those from a year ago?

A year ago, the 30-year fixed-rate mortgage averaged 2.87%, indicating a significant rise in rates.