Mortgage Rates Increase, Nearing Seven Percent

Rhea-AI Summary

Freddie Mac reports an increase in mortgage rates with the 30-year fixed-rate mortgage averaging 6.87 percent, up from the previous week. Despite the rise, homebuilders are optimistic due to increased home inventory and new construction, as well as expectations of a future rate cut by the Federal Reserve.

MCLEAN, Va., March 21, 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 6.87 percent.

“After decreasing for a couple of weeks, mortgage rates are once again on the upswing,” said Sam Khater, Freddie Mac’s Chief Economist. “As the spring homebuying season gets underway, existing home inventory has increased slightly and new home construction has picked up. Despite elevated rates, homebuilders are displaying renewed confidence in the housing market, focusing on the fact that there is a good amount of pent-up demand, an ongoing supply shortage and expectations that the Federal Reserve will cut rates later in the year.”

News Facts

• The 30-year FRM averaged 6.87 percent as of March 21, 2024, up from last week when it averaged 6.74 percent. A year ago at this time, the 30-year FRM averaged 6.42 percent.
• The 15-year FRM averaged 6.21 percent, up from last week when it averaged 6.16 percent. A year ago at this time, the 15-year FRM averaged 5.68 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:
Angela Waugaman
(703)714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8394a551-f773-41a7-b995-ac1a7b6f0e3b

FAQ

What is the average rate for the 30-year fixed-rate mortgage according to the Freddie Mac report?

The 30-year fixed-rate mortgage averaged 6.87 percent.

How does the current rate compare to last week's rate for the 30-year fixed-rate mortgage?

The current rate is higher than last week's rate, which averaged 6.74 percent.

What was the average rate for the 30-year fixed-rate mortgage a year ago?

A year ago, the 30-year fixed-rate mortgage averaged 6.42 percent.

What type of home purchase loans does the PMMS focus on?

The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put 20 percent down.

What is Freddie Mac's mission?

Freddie Mac's mission is to make home possible for families across the nation by promoting liquidity, stability, affordability, and equity in the housing market.