Mortgage Rates Increase for the Fourth Consecutive Week

Rhea-AI Summary

Freddie Mac reports a 30-year fixed-rate mortgage at 6.94%, reaching a two-month high. Chief Economist Sam Khater notes challenges in home affordability due to rising rates and prices.

Positive

• None.

Negative

• Potential homebuyer momentum dampened by rising mortgage rates.
• Affordability challenges due to higher rates and elevated prices may leave homebuyers on the sidelines.

MCLEAN, Va., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.94 percent.

"Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again,” said Sam Khater, Freddie Mac’s Chief Economist. “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying. While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.”

News Facts

• The 30-year FRM averaged 6.94 percent as of February 29, 2024, up from last week when it averaged 6.90 percent. A year ago at this time, the 30-year FRM averaged 6.65 percent.
• The 15-year FRM averaged 6.26 percent, down from last week when it averaged 6.29 percent. A year ago at this time, the 15-year FRM averaged 5.89 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Mollie Laniado
(571) 382-1784
Mollie_Laniado@FreddieMac.com

A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/38920e9c-d649-4c3d-859b-1a3494701fdf

FAQ

What is the current 30-year fixed-rate mortgage percentage according to Freddie Mac's PMMS?

Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage averaging 6.94 percent.

Who is the Chief Economist of Freddie Mac?

Sam Khater is the Chief Economist of Freddie Mac.

How does Freddie Mac aim to help families across the nation?

Freddie Mac aims to make home possible for families by promoting liquidity, stability, affordability, and equity in the housing market.

What challenges are mentioned in the press release regarding home affordability?

Challenges in home affordability are highlighted due to higher rates and elevated prices, potentially leaving homebuyers on the sidelines.