Mortgage Rates Jump

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reports the 30-year fixed-rate mortgage averaged 3.69% for the week ending February 10, 2022, up from 3.55% the previous week and significantly higher than 2.73% a year ago. The 15-year fixed-rate mortgage increased to 2.93%, while the 5-year ARM rose to 2.80%. Chief Economist Sam Khater indicated that rising mortgage rates, driven by a strong labor market and high inflation, may adversely impact homebuyer demand. The PMMS® focuses on conventional loans for borrowers with excellent credit.

Positive

• Increase in mortgage rates reflects a normalization of the economic recovery.
• Freddie Mac continues to provide mortgage capital, enhancing housing accessibility.

Negative

• Rising mortgage rates may reduce homebuyer demand due to increased borrowing costs.

MCLEAN, Va., Feb. 10, 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 3.69 percent.

“The normalization of the economy continues as mortgage rates jumped to the highest level since the emergence of the pandemic,” said Sam Khater, Freddie Mac’s Chief Economist. “Rate increases are expected to continue due to a strong labor market and high inflation, which likely will have an adverse impact on homebuyer demand.”

News Facts

• 30-year fixed-rate mortgage averaged 3.69 percent with an average 0.8 point for the week ending February 10, 2022, up from last week when it averaged 3.55 percent. A year ago at this time, the 30-year FRM averaged 2.73 percent.
• 15-year fixed-rate mortgage averaged 2.93 percent with an average 0.8 point, up from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 2.19 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent with an average 0.3 point, up from last week when it averaged 2.71 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 photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5679345a-345a-4f60-b458-27507925cd3a

FAQ

What is the current average rate for a 30-year fixed mortgage from Freddie Mac?

As of February 10, 2022, the average rate for a 30-year fixed mortgage is 3.69%.

How does the current mortgage rate compare to last year?

The current 30-year fixed mortgage rate of 3.69% is significantly higher than last year's average of 2.73%.

Why are mortgage rates increasing according to Freddie Mac?

Freddie Mac attributes the increase in mortgage rates to a strong labor market and high inflation.

What is the average rate for a 15-year fixed mortgage?

The average rate for a 15-year fixed mortgage is currently 2.93%.

How does the average 5-year ARM rate compare this week?

The average rate for a 5-year Treasury-indexed hybrid ARM is 2.80%.