Mortgage Rates Increase
Freddie Mac (OTCQB: FMCC) reported in its latest Primary Mortgage Market Survey that the average 30-year fixed-rate mortgage rose to 3.22%, up from 3.11% last week and significantly higher than the 2.65% average from a year ago. The 15-year fixed-rate mortgage also increased to 2.43%, while the 5-year hybrid adjustable-rate mortgage remained stable at 2.41%. Chief Economist Sam Khater indicated that rising inflation and strong economic growth may lead to continued increases in mortgage rates, although demand from first-time homebuyers appears resilient.
- First-time homebuyer growth remains strong despite rising mortgage rates.
- Current mortgage rates are backed by promising economic growth.
- 30-year fixed-rate mortgage increased to 3.22%, the highest since May 2020.
- Mortgage rates are over half a percent higher compared to January 2021.
MCLEAN, Va., Jan. 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 3.22 percent.
“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” said Sam Khater, Freddie Mac’s Chief Economist. “With higher inflation, promising economic growth and a tight labor market, we expect rates will continue to rise. The impact of higher rates on purchase demand remains modest so far given the current first-time homebuyer growth.”
News Facts
- 30-year fixed-rate mortgage averaged 3.22 percent with an average 0.7 point for the week ending January 6, 2022, up from last week when it averaged 3.11 percent. A year ago at this time, the 30-year FRM averaged 2.65 percent.
- 15-year fixed-rate mortgage averaged 2.43 percent with an average 0.6 point, up from last week when it averaged 2.33 percent. A year ago at this time, the 15-year FRM averaged 2.16 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.41 percent with an average 0.5 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 2.75 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/ca818a40-d587-4f06-a297-aab26396d5d5
FAQ
What is the current average rate for the 30-year fixed-rate mortgage reported by FMCC?
How does the 15-year fixed-rate mortgage rate compare to last week according to FMCC?
What is the significance of the recent increase in mortgage rates for FMCC?
How long has the 30-year fixed-rate mortgage rate been at this level according to FMCC?
What factors are influencing the rise in mortgage rates according to FMCC's report?
