Mortgage Rates Continue to Decrease

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a decrease in mortgage rates for the second consecutive week, with the 30-year fixed-rate mortgage averaging 5.10% on May 26, 2022, down from 5.25% the previous week. This marks a significant rise from 2.95% a year ago. The 15-year fixed-rate mortgage averaged 4.31%, down from 4.43%, while the 5-year adjustable-rate mortgage saw a slight increase to 4.20%. Chief Economist Sam Khater noted that the overall housing market is slowing, impacting consumer spending in related sectors.

Positive

• 30-year fixed-rate mortgage decreased to 5.10% from 5.25%
• 15-year fixed-rate mortgage fell to 4.31% from 4.43%
• Decrease in mortgage rates may benefit potential homebuyers

Negative

• Housing market slowdown impacting consumer spending
• Rising rates from a year ago indicate ongoing economic challenges

MCLEAN, Va., May 26, 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 5.10 percent.

“Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.”

News Facts

• 30-year fixed-rate mortgage averaged 5.10 percent with an average 0.9 point as of May 26, 2022, down from last week when it averaged 5.25 percent. A year ago at this time, the 30-year FRM averaged 2.95 percent.
• 15-year fixed-rate mortgage averaged 4.31 percent with an average 0.8 point, down from last week when it averaged 4.43 percent. A year ago at this time, the 15-year FRM averaged 2.27 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.20 percent with an average 0.3 point, up from last week when it averaged 4.08 percent. A year ago at this time, the 5-year ARM averaged 2.59 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/38bdb75c-98a0-4572-993b-4a5d69162d32

FAQ

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

As of May 26, 2022, the 30-year fixed-rate mortgage averaged 5.10%.

How did the 15-year fixed-rate mortgage change recently?

The 15-year fixed-rate mortgage averaged 4.31%, down from 4.43% last week.

What trends are observed in the mortgage market according to FMCC?

Freddie Mac observed a decrease in mortgage rates but noted a slowing housing market affecting consumer spending.

What is the significance of the mortgage rates reported by FMCC?

The reported mortgage rates can influence homebuyer decisions and reflect broader economic trends.

How do current mortgage rates compare to last year?

The 30-year fixed-rate mortgage was 5.10% this year compared to 2.95% last year.