Mortgage Rates Drop Below Three Percent Again

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey as of November 10, 2021. The 30-year fixed-rate mortgage averaged 2.98%, down from 3.09% the previous week. The 15-year fixed-rate mortgage averaged 2.27%, decreasing from 2.35%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.53%, slightly lower than last week's 2.54%. Although low mortgage rates are expected to sustain strong demand, affordability remains a concern for homebuyers.

Positive

• 30-year fixed-rate mortgage decreased to 2.98%, potentially boosting housing demand.
• Strong purchase demand anticipated as first-time homebuyers enter the market.

Negative

• Affordability pressures persist for homebuyers, which may hinder market growth.

MCLEAN, Va., Nov. 10, 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 2.98 percent.

“Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for homebuyers.”

News Facts

• 30-year fixed-rate mortgage averaged 2.98 percent with an average 0.7 point for the week ending November 10, 2021, down from last week when it averaged 3.09 percent. A year ago at this time, the 30-year FRM averaged 2.84 percent.
• 15-year fixed-rate mortgage averaged 2.27 percent with an average 0.6 point, down from last week when it averaged 2.35 percent. A year ago at this time, the 15-year FRM averaged 2.34 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.53 percent with an average 0.4 point, down slightly from last week when it averaged 2.54 percent. A year ago at this time, the 5-year ARM averaged 3.11 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/6d4341df-37e8-4c56-8477-38e71b28226f

FAQ

What is the current mortgage rate reported by Freddie Mac for FMCC?

The current 30-year fixed-rate mortgage rate reported by Freddie Mac for FMCC is 2.98%.

How did last week's mortgage rates compare to this week's for FMCC?

Last week, the 30-year fixed-rate mortgage averaged 3.09%, compared to 2.98% this week.

What is the expected impact of low mortgage rates on the housing market for FMCC?

Low mortgage rates are expected to maintain strong demand from first-time homebuyers entering the market.

What affordability issues are affecting homebuyers according to FMCC's report?

The report indicates that affordability pressures continue to be a concern for homebuyers.