Mortgage Rates Move Slightly

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the results of its Primary Mortgage Market Survey on June 10, 2021, revealing that the 30-year fixed-rate mortgage averaged 2.96%, down from 2.99% the previous week and 3.21% a year ago. The 15-year fixed-rate mortgage averaged 2.23%, while the 5-year ARM averaged 2.55%. Chief Economist Sam Khater noted a slowdown in purchase applications due to modestly higher mortgage rates, but emphasized that home prices remain elevated due to inventory shortages. This indicates a complex housing market amid economic recovery.

Positive

• 30-year fixed-rate mortgage dropped to 2.96%, creating potential opportunities for borrowers.
• 15-year fixed-rate mortgage decreased to 2.23%, offering favorable conditions for refinancing.
• 5-year ARM also declined to 2.55%, presenting attractive options for certain buyers.

Negative

• Slowdown in mortgage purchase applications could indicate weakening demand.
• Modestly higher mortgage rates may deter new buyers and impact overall housing market activity.

MCLEAN, Va., June 10, 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 2.96 percent.

“The economy is recovering remarkably fast and as pandemic restrictions continue to lift, economic growth will remain strong over the coming months,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite the stronger economy, the housing market is experiencing a slowdown in purchase application activity due to modestly higher mortgage rates. However, it has yet to translate into a weaker home price trajectory because the shortage of inventory continues to cause pricing to remain elevated.”

News Facts

• 30-year fixed-rate mortgage averaged 2.96 percent with an average 0.7 point for the week ending June 10, 2021, down from last week when it averaged 2.99 percent. A year ago at this time, the 30-year FRM averaged 3.21 percent.
• 15-year fixed-rate mortgage averaged 2.23 percent with an average 0.6 point, down from last week when it averaged 2.27 percent. A year ago at this time, the 15-year FRM averaged 2.62 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55 percent with an average 0.2 point, down from last week when it averaged 2.64 percent. A year ago at this time, the 5-year ARM averaged 3.10 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/9987502b-eef1-4967-bfa1-8e5b545d3462

FAQ

What are the current mortgage rates for FMCC as of June 10, 2021?

As of June 10, 2021, the 30-year fixed-rate mortgage averaged 2.96%, the 15-year fixed-rate mortgage averaged 2.23%, and the 5-year ARM averaged 2.55%.

How do the current mortgage rates compare to last year for FMCC?

The current rates are lower than last year's rates: the 30-year FRM was 3.21%, the 15-year FRM was 2.62%, and the 5-year ARM was 3.10%.

What did Freddie Mac's Chief Economist say about the housing market?

Sam Khater indicated that despite economic recovery, there is a slowdown in purchase applications possibly due to higher mortgage rates, but home prices remain elevated due to inventory shortages.