Mortgage Rates Exceed Six Percent for the First Time Since 2008

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey® on September 15, 2022. The 30-year fixed-rate mortgage averaged 6.02%, a rise from 5.89% the previous week and significantly higher than the 2.86% average a year ago. The 15-year fixed-rate mortgage reached 5.21%, up from 5.16%, while the 5-year ARM increased to 4.93% from 4.64%. These rates reflect heightened inflation, leading to dampened demand and potential downward pressure on home prices, despite insufficient housing inventory.

Positive

• Freddie Mac's PMMS® continues to provide valuable insights into mortgage rate trends.
• The enhancement of PMMS® to improve data collection is a positive step for accuracy.

Negative

• 30-year fixed-rate mortgage rates have risen, potentially dampening demand for housing.
• The increase in rates is expected to put downward pressure on home prices.

MCLEAN, Va., Sept. 15, 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 6.02 percent.

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist. “Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.”

News Facts

• 30-year fixed-rate mortgage averaged 6.02 percent with an average 0.8 point as of September 15, 2022, up from last week when it averaged 5.89 percent. A year ago at this time, the 30-year FRM averaged 2.86 percent.
• 15-year fixed-rate mortgage averaged 5.21 percent with an average 0.9 point, up from last week when it averaged 5.16 percent. A year ago at this time, the 15-year FRM averaged 2.12 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.93 percent with an average 0.2 point, up from last week when it averaged 4.64 percent. A year ago at this time, the 5-year ARM averaged 2.51 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/fef61d2b-9742-4744-81a0-74542b852356

 

FAQ

What is the current average rate for a 30-year fixed-rate mortgage as of September 15, 2022?

As of September 15, 2022, the average rate for a 30-year fixed-rate mortgage is 6.02 percent.

How much did the 30-year fixed-rate mortgage rate increase from last week?

The 30-year fixed-rate mortgage rate increased from 5.89 percent last week to 6.02 percent.

What is the impact of rising mortgage rates on housing demand?

Rising mortgage rates are expected to dampen demand for housing.

What changes are being made to the PMMS® in November 2022?

In November 2022, PMMS® will enhance data collection methods and will no longer publish fees/points or adjustable rates.