Mortgage Rates Continue to Shift Down

Rhea-AI Summary

On February 2, 2023, Freddie Mac (OTCQB: FMCC) announced that the average 30-year fixed-rate mortgage (FRM) dropped to 6.09%, down from 6.13% the previous week and significantly lower than the peak of over 7% in November. This decrease can potentially allow an additional three million mortgage-ready consumers to qualify for a $400,000 loan, aligning with the median home price. The 15-year FRM also fell to 5.14% from 5.17% week-over-week, compared to 2.77% a year ago. Freddie Mac continues to support housing affordability and stability in the market.

Positive

• 30-year FRM decreased to 6.09%, potentially aiding 3 million more consumers.
• 15-year FRM dropped to 5.14%, showing a positive trend in mortgage rates.

Negative

• None.

MCLEAN, Va., Feb. 02, 2023 (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 6.09 percent.

“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”

News Facts

• 30-year fixed-rate mortgage averaged 6.09 percent as of February 2, 2023, down from last week when it averaged 6.13 percent. A year ago at this time, the 30-year FRM averaged 3.55 percent.
• 15-year fixed-rate mortgage averaged 5.14 percent, down from last week when it averaged 5.17 percent. A year ago at this time, the 15-year FRM averaged 2.77 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/6a1fced3-63d1-45a5-86fa-701cae34f3e0

FAQ

What is the current 30-year fixed-rate mortgage rate from FMCC?

The current 30-year fixed-rate mortgage rate is 6.09%.

How much did the 30-year FRM drop compared to last week?

The 30-year FRM dropped from 6.13% to 6.09% compared to last week.

What impact does the decrease in mortgage rates have on consumers?

The decrease may enable an additional three million mortgage-ready consumers to qualify for loans.

What is the trend for the 15-year fixed-rate mortgage?

The 15-year fixed-rate mortgage has decreased to 5.14% from 5.17%.

How do current mortgage rates compare to last year?

A year ago, the 30-year FRM was 3.55% and the 15-year FRM was 2.77%.