Mortgage Rates Hit Five Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey on April 14, 2022, revealing that the 30-year fixed-rate mortgage averaged 5.00%, the highest in over ten years. This increase from 4.72% last week and 3.04% a year ago highlights challenges for potential homebuyers amid rising rates and high inflation. Additionally, the 15-year FRM averaged 4.17% and the 5-year ARM averaged 3.69%. The report indicates that affordability in homeownership is at a generational low due to these economic pressures.

Positive

• Freddie Mac reports 30-year fixed-rate mortgage at 5.00%, a significant increase indicating active mortgage market.

Negative

• Rising mortgage rates and high inflation may deter potential homebuyers, affecting future home sales.
• Affordability for homeownership is at a generational low, potentially impacting Freddie Mac's business.

MCLEAN, Va., April 14, 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 5.00 percent.

“This week, mortgage rates averaged five percent for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.”

News Facts

• 30-year fixed-rate mortgage averaged 5.00 percent with an average 0.8 point as of April 14, 2022, up from last week when it averaged 4.72 percent. A year ago at this time, the 30-year FRM averaged 3.04 percent.
• 15-year fixed-rate mortgage averaged 4.17 percent with an average 0.9 point, up from last week when it averaged 3.91 percent. A year ago at this time, the 15-year FRM averaged 2.35 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.69 percent with an average 0.3 point, up from last week when it averaged 3.56 percent. A year ago at this time, the 5-year ARM averaged 2.80 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/e4d3e407-9831-4d18-85ce-df9e23baa287

FAQ

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

As of April 14, 2022, the 30-year fixed-rate mortgage averaged 5.00%.

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

It increased from 4.72% last week.

What are the current average rates for the 15-year fixed-rate mortgage?

The 15-year fixed-rate mortgage averaged 4.17% as of April 14, 2022.

What is the impact of rising mortgage rates on homeownership?

Rising rates combined with high inflation are making homeownership more expensive for potential buyers.

How does Freddie Mac support homeownership?

Freddie Mac provides mortgage capital to lenders, making housing more accessible and affordable.