Mortgage Rates Jump Above Three Percent
Freddie Mac (FMCC) reported that the 30-year fixed-rate mortgage averaged 3.01% for the week ending September 30, 2021, an increase from 2.88% the prior week. The 15-year fixed-rate mortgage rose to 2.28% from 2.15%, while the 5-year ARM averaged 2.48%, up from 2.43%. Chief Economist Sam Khater noted that rising mortgage rates are influenced by the 10-year U.S. Treasury yield and tapering of Federal Reserve support. He anticipates that home prices will moderate as mortgage rates continue to rise.
- 30-year fixed-rate mortgage increased to 3.01%, indicating stronger demand for mortgages.
- 15-year fixed-rate mortgage rose to 2.28%, suggesting increased opportunities for refinancing.
- Rising mortgage rates may reduce affordability for potential homebuyers.
- Expectations of continued rate increases could lead to a slowdown in home price growth.
MCLEAN, Va., Sept. 30, 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 3.01 percent.
“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” said Sam Khater, Freddie Mac’s Chief Economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.”
Khater continued, “We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”
News Facts
- 30-year fixed-rate mortgage averaged 3.01 percent with an average 0.7 point for the week ending September 30, 2021, up from last week when it averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.88 percent.
- 15-year fixed-rate mortgage averaged 2.28 percent with an average 0.6 point, up from last week when it averaged 2.15 percent. A year ago at this time, the 15-year FRM averaged 2.36 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.48 percent with an average 0.3 point, up from last week when it averaged 2.43 percent. A year ago at this time, the 5-year ARM averaged 2.90 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/d5ddf33f-4d8f-4555-800d-77c6dee7a4bd
FAQ
What is the current average rate for the 30-year fixed-rate mortgage as of September 30, 2021?
How has the 15-year fixed-rate mortgage changed recently?
What factors are influencing the rise in mortgage rates according to Freddie Mac?
What impact are rising mortgage rates expected to have on home prices?
