Mortgage Rates Decrease Slightly

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a 2.99% average for the 30-year fixed-rate mortgage in its latest Primary Mortgage Market Survey, a slight decrease from 3.01% the previous week. The 15-year fixed-rate mortgage averaged 2.23%, down from 2.28%. Conversely, the 5-year Treasury-indexed hybrid adjustable-rate mortgage edged up to 2.52%. Economic uncertainties contribute to the competitive mortgage landscape, driving down housing affordability. Despite the current rates being lower than last year, rising mortgage rates and home prices are expected to challenge prospective homeowners.

Positive

• 30-year fixed-rate mortgage decreased to 2.99% from 3.01%.
• 15-year fixed-rate mortgage decreased to 2.23% from 2.28%.
• 5-year adjustable-rate mortgage increased to 2.52%, showing growth from previous week.

Negative

• Rising economic uncertainties contributing to competitive mortgage rates.
• Expectation of increasing mortgage rates and home prices, leading to declining housing affordability.

MCLEAN, Va., Oct. 07, 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 2.99 percent.

“Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

News Facts

• 30-year fixed-rate mortgage averaged 2.99 percent with an average 0.7 point for the week ending October 7, 2021, down slightly from last week when it averaged 3.01 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
• 15-year fixed-rate mortgage averaged 2.23 percent with an average 0.7 point, down from last week when it averaged 2.28 percent. A year ago at this time, the 15-year FRM averaged 2.37 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.3 point, up from last week when it averaged 2.48 percent. A year ago at this time, the 5-year ARM averaged 2.89 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/caff6bdb-2123-43c4-9ac7-7d38f6221a34

FAQ

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

The current average for the 30-year fixed-rate mortgage is 2.99%.

How does the 15-year fixed-rate mortgage rate compare to last week for FMCC?

The 15-year fixed-rate mortgage rate decreased to 2.23% from 2.28% last week.

What are the implications of rising mortgage rates for FMCC?

Rising mortgage rates are expected to challenge housing affordability and increase competition.

How did the 5-year adjustable-rate mortgage fare this week for FMCC?

The 5-year adjustable-rate mortgage increased to 2.52%, up from the previous week's 2.48%.