Mortgage Rates Jump Up
On August 11, 2022, Freddie Mac (OTCQB: FMCC) reported the latest results of its Primary Mortgage Market Survey (PMMS), indicating a significant rise in mortgage rates. The 30-year fixed-rate mortgage averaged 5.22%, up from 4.99% the previous week, a stark increase from 2.87% a year ago. The 15-year fixed-rate mortgage also increased to 4.59% from 4.26%. Despite rate fluctuations, the housing market appears to be stabilizing post-pandemic, with house prices expected to rise at a slower pace due to diminishing purchase demand and tight supply.
- Housing market stabilization post-pandemic noted.
- Tight supply may support house price increases, albeit at a slower pace.
- 30-year fixed-rate mortgage rose to 5.22%, impacting affordability for buyers.
- Purchase demand continues to decline, indicating potential market weakness.
MCLEAN, Va., Aug. 11, 2022 (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 5.22 percent.
“The 30-year fixed-rate went back up to well over five percent this week, a reminder that recent volatility remains persistent,” said Sam Khater, Freddie Mac’s Chief Economist. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market. Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer.”
News Facts
- 30-year fixed-rate mortgage averaged 5.22 percent with an average 0.7 point as of August 11, 2022, up from last week when it averaged 4.99 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
- 15-year fixed-rate mortgage averaged 4.59 percent with an average 0.7 point, up from last week when it averaged 4.26 percent. A year ago at this time, the 15-year FRM averaged 2.15 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.43 percent with an average 0.0 point, up from last week when it averaged 4.25 percent. A year ago at this time, the 5-year ARM averaged 2.44 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/51a1686d-a231-4c8d-b121-2944d429f678
FAQ
What was the average rate for the 30-year fixed-rate mortgage on August 11, 2022?
How did the 15-year fixed-rate mortgage rate change recently?
What factors are affecting the housing market according to Freddie Mac?