Mortgage Rates Increase to Three Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, revealing that the 30-year fixed-rate mortgage averaged 3.00% for the week ending May 20, 2021. This marked an increase from the previous week’s 2.94%. In comparison to last year, the rate dropped from 3.24%. Additionally, the 15-year fixed-rate mortgage rose to 2.29%, while the 5-year Treasury-indexed hybrid ARM remained unchanged at 2.59%. The continued low rates contrast with a tightening housing supply exacerbated by labor disruptions and high building costs.

Positive

• 30-year fixed-rate mortgage averaged 3.00%, indicating continued low borrowing costs.
• 15-year fixed-rate mortgage increased to 2.29%, providing affordable options for borrowers.

Negative

• Persistent housing supply shortage hindering home buyers due to high building costs and labor disruptions.

MCLEAN, Va., May 20, 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 3.00 percent.

“After a run up over the first few months of the year, rates have paused and hovered around three percent since March,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite this favorable rate climate, there remains a shortage of homes for sale. The lack of housing supply has been compounded by labor disruptions and expensive building materials that are driving up the cost of new housing, making it difficult for homebuyers to find homes to purchase.”

News Facts

• 30-year fixed-rate mortgage averaged 3.00 percent with an average 0.6 point for the week ending May 20, 2021, up from last week when it averaged 2.94 percent. A year ago at this time, the 30-year FRM averaged 3.24 percent.
• 15-year fixed-rate mortgage averaged 2.29 percent with an average 0.7 point, up from last week when it averaged 2.26 percent. A year ago at this time, the 15-year FRM averaged 2.70 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.59 percent with an average 0.3 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 3.17 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/9fa9cbe1-eda8-4ba9-b2fd-2d1eaadc9711

 

FAQ

What was the average 30-year fixed-rate mortgage for FMCC on May 20, 2021?

The average 30-year fixed-rate mortgage for FMCC on May 20, 2021, was 3.00%.

How has the 15-year fixed-rate mortgage changed according to FMCC's latest survey?

The 15-year fixed-rate mortgage rose to 2.29%, up from the previous week's 2.26%.

What factors are affecting homebuyers according to FMCC's press release?

A shortage of homes for sale, compounded by labor disruptions and rising building material costs, is affecting homebuyers.

What is the significance of the Primary Mortgage Market Survey by FMCC?

The PMMS provides insights into mortgage rates, which affect home affordability and the housing market's overall health.