Mortgage Rates Exceed Four Percent
Freddie Mac (OTCQB: FMCC) reported a rise in mortgage rates in its Primary Mortgage Market Survey on March 17, 2022. The 30-year fixed-rate mortgage averaged 4.16%, up from 3.85% the previous week and significantly higher than 3.09% a year ago. The 15-year fixed-rate mortgage also increased to 3.39%, while the 5-year hybrid adjustable-rate mortgage rose to 3.19%. The increase in rates is attributed to the Federal Reserve's short-term rate hikes, indicating further expected increases throughout the year, which may impact home purchase demand and housing prices.
- 30-year fixed-rate mortgage increased to 4.16%, indicating rising interest rates.
- Low housing inventory suggests ongoing competitive demand despite increased rates.
- Home purchase demand has moderated due to rising mortgage rates.
- High house price pressures may continue, affecting affordability.
MCLEAN, Va., March 17, 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 4.16 percent.
“The 30-year fixed-rate mortgage exceeded four percent for the first time since May of 2019,” said Sam Khater, Freddie Mac’s Chief Economist. “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting high house price pressures will continue during the spring homebuying season.”
News Facts
- 30-year fixed-rate mortgage averaged 4.16 percent with an average 0.8 point for the week ending March 17, 2022, up from last week when it averaged 3.85 percent. A year ago at this time, the 30-year FRM averaged 3.09 percent.
- 15-year fixed-rate mortgage averaged 3.39 percent with an average 0.8 point, up from last week when it averaged 3.09 percent. A year ago at this time, the 15-year FRM averaged 2.40 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.19 percent with an average 0.2 point, up from last week when it averaged 2.97 percent. A year ago at this time, the 5-year ARM averaged 2.79 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 chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3fd932aa-28a1-49c0-bd58-03c67c8f98ed
FAQ
What is the current average rate for a 30-year fixed-rate mortgage from FMCC?
How much did the 30-year fixed-rate mortgage increase in FMCC's latest report?
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