Mortgage Rates Inch Up
Freddie Mac (FMCC) reported that the 30-year fixed-rate mortgage averaged 3.12% for the week ending December 16, 2021, an increase from 3.10% the previous week. A year ago, it averaged 2.67%. The 15-year fixed-rate mortgage averaged 2.34%, down from 2.38% last week. Meanwhile, the 5-year ARM remained unchanged at 2.45%. Chief Economist Sam Khater noted that rising economic factors and monetary policy shifts are contributing to increased mortgage rates, which may limit homebuyer budgets amid high house prices and low supply.
- 30-year fixed-rate mortgage rose to 3.12%, indicating stronger economic conditions.
- 15-year fixed-rate mortgage remained competitive at 2.34%, attracting buyers.
- 5-year ARM held steady at 2.45%, providing stable options for adjustable-rate mortgage seekers.
- Increasing mortgage rates may restrict potential homebuyers' budgets.
- High house prices and low inventory could dampen housing market activity.
MCLEAN, Va., Dec. 16, 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 3.12 percent.
“Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” said Sam Khater, Freddie Mac’s Chief Economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets on the sideline.”
News Facts
- 30-year fixed-rate mortgage averaged 3.12 percent with an average 0.6 point for the week ending December 16, 2021, up from last week when it averaged 3.10 percent. A year ago at this time, the 30-year FRM averaged 2.67 percent.
- 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, down from last week when it averaged 2.38 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.45 percent with an average 0.3 point, unchanged from last week. 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/601fb984-ddb3-4364-9ab5-06e465dfffa2
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
FAQ
What is the average 30-year fixed-rate mortgage rate reported by Freddie Mac on December 16, 2021?
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