Mortgage Rates Decline

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the 30-year fixed-rate mortgage averaged 6.33% as of January 12, 2023, down from 6.48% the previous week. A year earlier, the average was 3.45%. The 15-year fixed-rate mortgage also decreased to 5.52% from 5.73% last week, compared to 2.62% a year ago. Chief Economist Sam Khater noted that the market is sensitive to rate shifts, with buyers frequently entering and exiting based on slight rate changes. Freddie Mac continues to provide mortgage capital to enhance housing affordability and access across the U.S.

Positive

• None.

Negative

• The significant year-over-year increase in average mortgage rates (up from 3.45% to 6.33% for 30-year FRM) may deter long-term homebuyers.

MCLEAN, Va., Jan. 12, 2023 (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 6.33 percent.

“While mortgage rates have resumed their decline, the market remains hypersensitive to rate movements, with purchase demand experiencing large swings relative to small changes in rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Over the last few weeks latent demand has been on display with buyers jumping in and out of the market as rates move.”

News Facts

• 30-year fixed-rate mortgage averaged 6.33 percent as of January 12, 2023, down from last week when it averaged 6.48 percent. A year ago at this time, the 30-year FRM averaged 3.45 percent.
• 15-year fixed-rate mortgage averaged 5.52 percent, down from last week when it averaged 5.73 percent. A year ago at this time, the 15-year FRM averaged 2.62 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 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/37e1e3f2-79c8-42b5-a91d-222320296997

 

FAQ

What is the current 30-year fixed-rate mortgage average for FMCC?

As of January 12, 2023, the 30-year fixed-rate mortgage averaged 6.33%.

How much has the 15-year fixed-rate mortgage decreased for FMCC?

The 15-year fixed-rate mortgage decreased to 5.52% from 5.73% in the previous week.

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

A year ago, the 30-year fixed-rate mortgage averaged 3.45%.

What trends did Sam Khater mention regarding the mortgage market?

Sam Khater noted that the market is hypersensitive to rate movements, with buyers showing fluctuating demand based on small rate changes.