Mortgage Rates Generally Hold Steady

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, showing a slight increase in the 30-year fixed-rate mortgage (FRM) to 2.87% for the week ending August 26, 2021, up from 2.86% the previous week. A year prior, it averaged 2.91%. The 15-year FRM averaged 2.17%, a minor rise from 2.16%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) decreased to 2.42%. The report highlights that low inventory remains a major barrier to increasing home sales, despite improving purchase application demand.

Positive

• 30-year FRM increased slightly from 2.86% to 2.87%.
• 15-year FRM rose from 2.16% to 2.17%.
• Improving demand for purchase applications indicates market activity.

Negative

• Low inventory is a significant obstacle to further increases in home sales.

MCLEAN, Va., Aug. 26, 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 2.87 percent.

“The tug-of-war between the economic recovery and rising COVID-19 cases has left mortgage rates moving sideways over the last few weeks,” said Sam Khater, Freddie Mac’s Chief Economist. “Overall, rates continue to be low, with a window of opportunity for those who did not refinance under three percent. From a homebuyer perspective, purchase application demand is improving, but the major obstacle to higher home sales remains very low inventory for consumers to purchase.”

News Facts

• 30-year fixed-rate mortgage averaged 2.87 percent with an average 0.6 point for the week ending August 26, 2021, up slightly from last week when it averaged 2.86 percent. A year ago at this time, the 30-year FRM averaged 2.91 percent.
  
  
• 15-year fixed-rate mortgage averaged 2.17 percent with an average 0.6 point, up slightly last week when it averaged 2.16 percent. A year ago at this time, the 15-year FRM averaged 2.46 percent.
  
  
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.42 percent with an average 0.2 point, down slightly from last week when it averaged 2.43 percent. A year ago at this time, the 5-year ARM averaged 2.91 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/83d1a4f2-9080-4b3a-b7a8-908da3b5abdc

FAQ

What is the current rate for the 30-year fixed-rate mortgage according to FMCC?

The current rate for the 30-year fixed-rate mortgage is 2.87%.

How much did the 15-year fixed-rate mortgage increase?

The 15-year fixed-rate mortgage increased from 2.16% to 2.17%.

What challenges are currently affecting home sales as reported by Freddie Mac?

The major challenge affecting home sales is very low inventory.

What was the average rate for the 5-year ARM this week?

The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage is 2.42%.

How does the current mortgage rate compare to last year?

A year ago, the 30-year FRM averaged 2.91%, indicating a slight decrease this year.