Mortgage Rates Decrease Slightly

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported a slight decrease in mortgage rates as of October 6, 2022, with the 30-year fixed-rate mortgage averaging 6.66%, down from 6.70% last week. In contrast, a year ago, the rate was 2.99%. The 15-year fixed-rate mortgage averaged 5.90%, down from 5.96%, while the 5-year ARM increased to 5.36%. Freddie Mac is set to enhance its Primary Mortgage Market Survey to improve data quality, transitioning to a system based on applications from thousands of lenders starting November 2022.

Positive

• Mortgage rates saw a slight decrease from last week, indicating potential relief for borrowers.
• Transitioning to a new data collection system aims to enhance the accuracy and diversity of mortgage rate information.

Negative

• Despite the decrease, current mortgage rates remain high compared to last year, making housing less affordable.
• The rise in the 5-year ARM from last week indicates potential upward pressure on adjustable-rate mortgages.

MCLEAN, Va., Oct. 06, 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 6.66 percent.

“Mortgage rates decreased slightly this week due to ongoing economic uncertainty,” said Sam Khater, Freddie Mac’s Chief Economist. “However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers.”

News Facts

• 30-year fixed-rate mortgage averaged 6.66 percent with an average 0.8 point as of October 6, 2022, down from last week when it averaged 6.70 percent. A year ago at this time, the 30-year FRM averaged 2.99 percent.
• 15-year fixed-rate mortgage averaged 5.90 percent with an average 1.0 point, down from last week when it averaged 5.96 percent. A year ago at this time, the 15-year FRM averaged 2.23 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.36 percent with an average 0.3 point, up from last week when it averaged 5.30 percent. A year ago at this time, the 5-year ARM averaged 2.52 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.

NOTE: Freddie Mac is making a number of enhancements to the PMMS^® to improve the collection, quality and diversity of data used. Instead of surveying lenders, the weekly results will be based on applications received from thousands of lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. Additionally, we will no longer publish fees/points or adjustable rates. The newly recast PMMS^® will be put in place in November 2022, and the weekly distribution will be Thursdays at 12 p.m. noon ET.

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/04622996-4609-4072-bdf6-5732a562fdbf

FAQ

What is the current mortgage rate reported by Freddie Mac for October 6, 2022?

The 30-year fixed-rate mortgage averaged 6.66% as of October 6, 2022.

How does the current mortgage rate compare to last year for Freddie Mac?

A year ago, the 30-year fixed-rate mortgage averaged 2.99%, indicating a significant increase.

What changes is Freddie Mac making to its Primary Mortgage Market Survey?

Freddie Mac is enhancing its PMMS by using applications from thousands of lenders, starting in November 2022.

What was the average rate for the 15-year fixed-rate mortgage on October 6, 2022?

The 15-year fixed-rate mortgage averaged 5.90% as of October 6, 2022.

What trend was noted in the 5-year ARM mortgage rate according to Freddie Mac?

The 5-year Treasury-indexed hybrid adjustable-rate mortgage increased to 5.36% from 5.30% last week.