Mortgage Rates Inch Down

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced that the 30-year fixed-rate mortgage averaged 2.98% for the week ending July 1, 2021, down from 3.02% the previous week. The 15-year fixed-rate mortgage averaged 2.26%, a decrease from 2.34%. In contrast, the 5-year Treasury-indexed hybrid ARM rose slightly to 2.54% from 2.53%. Freddie Mac's Chief Economist noted steady economic growth but a slowdown in the housing market due to decreased affordability and inventory.

Positive

• 30-year fixed-rate mortgage decreased to 2.98%, enhancing affordability for homeowners.
• 15-year fixed-rate mortgage also dropped to 2.26%, providing additional options for borrowers.

Negative

• Deterioration in affordability is leading to a slowdown in the housing market.
• Decreased for-sale inventory negatively impacts market activity.

MCLEAN, Va., July 01, 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 2.98 percent.

“Economic growth remains steady and is bolstering more segments of the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “Although low and stable mortgage rates have kept the housing market booming over recent months, a deterioration in affordability and for-sale inventory has led to a market slowdown.”

News Facts

• 30-year fixed-rate mortgage averaged 2.98 percent with an average 0.6 point for the week ending July 1, 2021, down from last week when it averaged 3.02 percent. A year ago at this time, the 30-year FRM averaged 3.07 percent.
• 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.7 point, down from last week when it averaged 2.34 percent. A year ago at this time, the 15-year FRM averaged 2.56 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.54 percent with an average 0.3 point, up slightly from last week when it averaged 2.53 percent. A year ago at this time, the 5-year ARM averaged 3.00 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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9a13012d-75f6-45b4-82bc-3fe149c2ce53

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

 

FAQ

What is the current average rate for a 30-year fixed-rate mortgage as of July 1, 2021?

The average rate for a 30-year fixed-rate mortgage is 2.98%.

How has the 15-year fixed-rate mortgage changed recently?

The 15-year fixed-rate mortgage has decreased to 2.26%.

What does Freddie Mac's PMMS indicate about market trends?

The PMMS indicates a slowdown in the housing market due to reduced affordability and inventory.

What was the average rate for the 5-year Treasury-indexed hybrid ARM?

The average rate for the 5-year Treasury-indexed hybrid ARM is 2.54%.