Mortgage Rates Move Toward Seven Percent as Markets Digest Incoming Data

Rhea-AI Summary

Freddie Mac (FMCC) reports a 30-year fixed-rate mortgage at 6.88%, influenced by inflation and Federal Reserve policy. Inflation data shows minimal movement with an average growth rate of 3.3%. Market reacts differently, Dow Jones drops post-announcement.

MCLEAN, Va., April 11, 2024 (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 6.88 percent.

“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” said Sam Khater, Freddie Mac’s Chief Economist. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture. Since inflation decelerated from 9% to 3% between June 2022 and June 2023, the annual growth rate of inflation has remained effectively flat, ranging from 3.1% to 3.7% and averaging 3.3%. The March estimate of 3.5% annual growth is in the middle of that range. However, the market’s reaction was dramatically different, as illustrated by a significant drop in the Dow Jones Industrial Average post-announcement.”

Khater continued, “It’s clear that while the trend in inflation data has been close to flat for nearly a year, the narrative is much less clear and resembles the unrealized expectations of a recession from a year ago.”

News Facts

• The 30-year FRM averaged 6.88 percent as of April 11, 2024, up from last week when it averaged 6.82 percent. A year ago at this time, the 30-year FRM averaged 6.27 percent.
• The 15-year FRM averaged 6.16 percent, up from last week when it averaged 6.06 percent. A year ago at this time, the 15-year FRM averaged 5.54 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’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

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/efbbda59-7091-4f2f-acbf-6ae31d2529a7

FAQ

What is the current average 30-year fixed-rate mortgage (FRM) reported by Freddie Mac (FMCC)?

Freddie Mac (FMCC) reported a 30-year fixed-rate mortgage at 6.88% as of April 11, 2024.

What factors are influencing the increase in mortgage rates according to Freddie Mac (FMCC)?

Mortgage rates are increasing due to sustained inflation and the reevaluation of the Federal Reserve's monetary policy path.

What is the average growth rate of inflation according to the recent data mentioned by Freddie Mac (FMCC)?

The recent inflation data shows an average growth rate of 3.3% with minimal movement.

How has the market reacted to the inflation data according to Freddie Mac (FMCC)?

The market's reaction to the inflation data has been different, with a significant drop in the Dow Jones Industrial Average post-announcement.