Mortgage Rates Decrease Slightly

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 5.25% as of May 19, 2022, down from 5.30% the previous week but significantly up from 3.00% a year ago. The 15-year fixed-rate mortgage fell to 4.43%, while the 5-year Treasury-indexed ARM rose to 4.08%. Economic uncertainty has led to mortgage rate volatility, decreasing purchase demand and declining homebuilder sentiment, which is at its lowest in nearly two years. Rising costs for builders exacerbate the situation, suggesting ongoing challenges in the housing market.

Positive

• 30-year fixed-rate mortgage decreased to 5.25% from 5.30% last week.
• 15-year fixed-rate mortgage decreased to 4.43% from 4.48% last week.

Negative

• 30-year fixed-rate mortgage significantly higher than 3.00% a year ago.
• Homebuilder sentiment at the lowest level in nearly two years.
• Economic uncertainty contributing to waning purchase demand.

MCLEAN, Va. , May 19, 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 5.25 percent.

"Economic uncertainty is causing mortgage rate volatility,” said Sam Khater, Freddie Mac’s Chief Economist. “As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue.”

News Facts

• 30-year fixed-rate mortgage averaged 5.25 percent with an average 0.9 point as of May 19, 2022, down from last week when it averaged 5.30 percent. A year ago at this time, the 30-year FRM averaged 3.00 percent.
• 15-year fixed-rate mortgage averaged 4.43 percent with an average 0.9 point, down from last week when it averaged 4.48 percent. A year ago at this time, the 15-year FRM averaged 2.29 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.08 percent with an average 0.2 point, up from last week when it averaged 3.98 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/84c81f3f-dc33-4d97-b8f9-bf103bf24958

 

FAQ

What is the latest average for the 30-year fixed-rate mortgage from Freddie Mac?

As of May 19, 2022, the average for the 30-year fixed-rate mortgage is 5.25%.

Has the 15-year fixed-rate mortgage increased or decreased recently?

The 15-year fixed-rate mortgage has decreased to 4.43% as of May 19, 2022.

What factors are affecting homebuilder sentiment according to Freddie Mac?

Economic uncertainty and rising costs are causing homebuilder sentiment to drop to its lowest in nearly two years.

How does the current mortgage rate compare to last year?

The 30-year fixed-rate mortgage is significantly higher than the 3.00% average from a year ago.

What challenges are builders facing in the current market?

Builders are facing rising costs and declining homebuyer demand, contributing to ongoing challenges.