Mortgage Rates Continue to Rise, Nearing Seven Percent

Rhea-AI Summary

Freddie Mac reports an increase in 30-year fixed-rate mortgages to 6.90%, attributing it to strong economic and inflation data. The Chief Economist highlights the impact of higher rates on housing affordability, stating that good economic news is now bad news for homebuyers.

Positive

• Freddie Mac's Primary Mortgage Market Survey shows a rise in 30-year fixed-rate mortgages to 6.90% on February 22, 2024.
• The 15-year fixed-rate mortgage also increased to 6.29% compared to last week.
• Chief Economist Sam Khater notes that strong economic and inflation data led to higher mortgage rates.
• Historically, a vibrant economy with slightly higher rates did not affect the housing market significantly, but the current cycle is different due to low housing affordability.
• Freddie Mac aims to make homeownership possible for families by promoting stability, affordability, and equity in the housing market.

Negative

• None.

MCLEAN, Va., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.90 percent.

"Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”

News Facts

• The 30-year FRM averaged 6.90 percent as of February 22, 2024, up from last week when it averaged 6.77 percent. A year ago at this time, the 30-year FRM averaged 6.50 percent.
• The 15-year FRM averaged 6.29 percent, up from last week when it averaged 6.12 percent. A year ago at this time, the 15-year FRM averaged 5.76 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

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/b657ebd6-75e5-4917-9fa3-d732c754e1cf

 

FAQ

What is the current 30-year fixed-rate mortgage percentage according to Freddie Mac's PMMS?

Freddie Mac's PMMS reports the 30-year fixed-rate mortgage averaged 6.90% on February 22, 2024.

How does Freddie Mac explain the increase in mortgage rates?

Freddie Mac attributes the rise in mortgage rates to strong incoming economic and inflation data.

What is the 15-year fixed-rate mortgage percentage as per the latest report?

The 15-year fixed-rate mortgage averaged 6.29% in the recent report.

Who is the Chief Economist of Freddie Mac?

Sam Khater serves as the Chief Economist of Freddie Mac.

What is Freddie Mac's mission?

Freddie Mac's mission is to make homeownership possible for families by promoting stability, affordability, and equity in the housing market.